That has NOT been fixed as we have all asked. It HAS been fixed as you have shown, however the image is not placed ON the icon, but half the picture is shown as being in there.
In my estimation, this is worthless. As you can plainly see, it says "Choose a file to show ON the folder icon," not IN.
My current version of Windows 11 is way beyond 22557, and yet this is not yet fixed.
When can we all expect to see this corrected? Thank you.