No, it basically means that it is a genuine bug and has all the
information necessary for it to be looked at by a developer. It is not
being ignored by developers. Also note that the priority is set low ('A
cosmetic/usability issue that does not limit the functionality of an
application'). The developers have more pressing bugs to work on and
will work on it when they can (if it hasn't already been fixed upstream
or if someone hasn't kindly contributed a patch by then).

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Desktop icons are allowed to overlap horribly
https://bugs.launchpad.net/bugs/40872
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