So it is pretty simple, you go into regedit and find and delete HKEY_CLASSES_ROOT\lnkfile.
What they do not warn against is that once you delete this entry the shortcut folders will fail to appear in all "save as" windows.
Example1: you write in notepad, click save as and you will not see any shortcut folders.
Example2: you click save target as when downloading from the internet and again shortcut folders will not appear in the window.
You will have to save to somewhere else eg. desktop and move them manually.
Now I am not 100% sure that deleting HKEY_CLASSES_ROOT\lnkfile causes this but I did notice this error within 5 minuted of deleting the entry.
So what do you after this? I have no idea. I didn't save the entry before I deleted it. Though I am pretty sure registry cleaners out there could fix it.
I don't know how to recreate the entry either