No clue why this is happening (screen recording link):
For whatever reason, the desktop wallpaper only shows up when I use the Hot Corner (cmd + bottom right), but not in the background of Mission Control or App Exposé or even when I resize the Chrome Window. Desktop 2, however, shows the wallpaper anytime it should.
I moved all the windows onto Desktop 2, and deleted Desktop 1, and it showed the wallpaper as normal for about 30 seconds. Then Mission Control started showing an empty black square in the spot where Desktop 2 would have been.
Currently running the newest macOS.