Very long story somewhat short(er), I am having the same problem with my iPod Touch and bouncing between two different drivers based on whether I select the one Apple tells me to or the one Microsoft detects. The Apple one that shows up in the Device Manager as "Apple Mobile Device USB Driver" under the Universal Serial Bus Controllers grants me syncing capabilities in iTunes while the Microsoft one shows up in the Device Manager as Portable Devices and I believe it was called "iPod Touch" grants me the ability to copy/remove photos taken through the windows explorer. The Microsoft driver can be obtained by telling the computer to automatically search for drivers while the Apple driver can be found by manually searching for the driver. Pathway the Apple troubleshooting article instructed to follow was C:\Program Files\Common Files\Apple\Mobile Device Support\Drivers.
I cannot get both to function simultaneously and this has happened since I upgraded from iOS 9.5 to iOS 10.0. I have an iPod Touch Gen 6 presently upgrading to iOS 10.1 because I have nothing to lose at this point and its computer counterpart is a Dell Inspiron N7110 running on Windows 7. iTunes before and after re-installation was ver. 126.96.36.199
My layman's opinion based on what I've attempted in all the troubleshooting I've come across online is that this is an iOS 10.0 glitch not being universally talked about for only some users and likely based on operating systems and hardware models which I hope is fixed with the iOS 10.1 upgrade. Unfortunately, I can't test this with a revert to iOS 9.5 because I don't believe I have a backup file of that operating system, but I may try to dig around in my iTunes files to see if there's one hidden away.
Presently, I'm able to sync everything as usual with iTunes. Windows explorer functionality still disabled. I'll post an update after the iOS 10.1 upgrade whether or not it fixed any of this in case anyone else is still dealing with this frustration.
UPDATE: IOS 10.1 does NOT fix this problem. I have uninstalled one driver to get the other as it seems both cannot coexist anymore. Knowing the sounds my computer played when I used to plug in my iPod, two distinct drivers used to be activated upon its attachment; I clearly remember two activation sounds firing off when it would be plugged in and now only hear one. If anyone has computer knowledge, maybe they can figure out the problem. Unfortunately, I'm pretty clueless in these more in-depth matters.
UPDATE 2: After 2 hours on chat support with Apple, we got it functioning for BOTH drivers to be responding simultaneously and now it functions both in iTunes and in Windows Explorer--it IS the key. After some random stuff like a hard reset, etc, this is what seemed to do the trick, Apple's discussions about devices not showing in iTunes: https://discussions.apple.com/docs/DOC-10691. Picking the specific driver was necessary; I went through this walkthrough earlier on my own and picked the folder through the "Search for Driver Software in This Location" rather than the option to pick the specific file through the "Let me pick from a list of device drivers on my computer" route. This step might be the difference maker. Once selected and installed, I then had to disconnect and reconnect the iPod for it to re-enable the driver to detect it in Windows Explorer; the iPod did NOT show up in Windows Explorer until this step. I had my iPod unlocked the entire time while doing this. Hopefully this helps some others with this problem unresolved. I've got a ticket number in the event this isn't permanently fixed, but hopefully won't have to use it.