Thanks for the link, unfortunately there in lies the problem, the drive doesn't showing up in disk management, it's only shows up within explorer, go figure.
I wonder if you have some sort of Image Backup software like Macrium Reflect, which enables you to mount that Backup Image as a drive, to enable it to be explored and copied from/to like a normal drive.
I've just mounted my Image Backup as Drive L, and it comes up the same as yours ... "Local Disk", although it doesn't show up as "Raw".
The possibility is that it was mounted, but wasn't later "detached" when finished with.
I thought you'd hit the nail on the head there, but nope, I even mounted a camera to find out what would happen, but another drive letter is allocated.
Looks like I'm going to be stuck with it, to be honest it's not a major problem, it's just one of those annoying things.