Fovorites generic icon Win11 25H2

My Favorites icon has reverted to generic icon:



IconResource is correct as well as the other ShellClassInfo. Desktop.ini has usual filesystem flags A SH. Usual guides to reset icon cache didn't work.
Is it a minor glitch in recent Win updates?

Oh, I've just found a strange thing about permissions:



Those S-1-15... accounts shouldn't be there (???) as the other system icons like Contacts, Links have just SYSTEM, Administrators, user.
Is it also normal that "Integrity level: Low mandatory level" for Favorites? ...

Just checked from a VM and is the same, so nothing wrong about permissions....

First thing I would try, Edit the file in Notepad and manually change the icon to see if that works.
Second thing to try: Change the icon with Resource Hacker or Customizer God.

PS: Probably the folder cannot be modified directly. In that case you have to replace the owner of the original folder from System to Administrators group, so you can change access rights. Then make sure the Administrators group has Full access right so you can modify the folder.