Based on your description, it seems that the permissions you have on Local users are blocking this service to be ran. If I understand correctly, when allowing the user run this service everything is working fine so definitely is not a problem with the driver but the configuration in the system.
I have the same problem with you on my HP ZBook 14 G2 with Windows 10. When I login with local account, the context menu is OK, if I login with a domain account, the context menu is VERY SLOW. It's newly installed OS and all settings are by default. Apparently it is affecting a lot of users, I think Intel should fix this issue!
I am having exactly same problems on a Lenovo Thinkpad T540P.
If you search for TheDeskTopContextMenu you will find a number of reports about this problem.
It has been bothering me for some time so this is nothing new.
I have run some tests based on this behavior but everything seems to be working fine, the right click on desktop works normally, liked mentioned before this is not a problem with the driver but the configuration in the system.
I just had the same experience as Eristoff. I installed a fresh copy of Windows 10 Enterprise on a Dell XPS 15 9530. The context menu was really slow. Disabling igfxDTCM Module 188.8.131.5271 would make it fast again. But I wanted to keep the context menu so I tried the permission trick and it worked! I'm logged in as MYDOMAIN\foo, but there is also a local account named foo so I have two user folders called foo and foo.MYDOMAIN. After I entered \Users\foo and clicked continue on the "Click continue to permanently get access to this folder" prompt, the context menu slow down is gone. So it seems that the Intel software is confused about the user folders somehow.