Sorry, for the confusion, but that init is no longer needed for reproduction.

1. With empty .emacs.d and no init file, do M-x desktop-save.

2. Manually change buffer form in .emacs.desktop to something other than *scratch* or *GNU Emacs* and ensure that (horizontal-scroll-bars . t).

3. Open a new Emacs 25 session and do M-x desktop-read. This triggers the bug for me.

Here one desktop.el with which I get this problem.

-- 
Best Regards,
Nikolay Kudryavtsev