Apple - Folders and files are overlapped by menu in Finder
It's most likely a Problem with automatic sorting and cleanup in the Grid Display. Look at the general Info Pages from Apple Support here and here about customizing your Display Settings.
In Short: Right-click (if it is activated) on the Finder Window and change the 'sort by' Option and activate the cleanup. You probably have the Option 'Snap to Grid' activated - try deactivating it.
-- Addendum --
As a second option, try deleting the '.DS_Store'-Files, which store Icon Positions and Images (see further explanation here). If that doesn't help there are a few other possibilities, but let's start with the easiest one
Like all Files starting with a dot [.] these are invisible. You have to use the Terminal.app, found in /Applications/Utilities/ do remove them. Technically, you need only remove the .DS_Store-File in the Folder "Canada" according to your Screenshot.
Open the Terminal and navigate to the Folder, f.e. within 'Documents'
cd /Users/yourusername/Documents/Canada
hit enter, the type
rm .DS_Store
You should close the Folder "Canada" and then reopen it again. The Icon and Sidebar Position should be normal.
I noticed the same thing just now when I tried to duplicate your issue. Also running 10.12.5.
I was able to get rid of the problem by:
- Turning the Tab Bar* off.
- Turning the Status Bar on.
- Resizing the icons with the slider in the Status Bar.
This caused the folders to move into the correct positions.
* The issue showed up with or without the Tab Bar, so I don't know if it is involved with the bug or not.