Hello there,
Based on the information provided, it seems that the issue with plain white shortcut icons on Windows 10 client PCs is related to the Windows Update (KB5028166) that was applied in July 2023. Here are a few points to consider and possible explanations for the phenomenon:
Icon Cache: The icon cache is a database file that stores icons for faster display. Clearing the icon cache, as you tried, should have caused Windows to rebuild the cache and display the correct icons. However, it seems that this step didn't resolve the issue.
GPO and Icon Files: It's possible that the Windows Update (KB5028166) introduced some changes related to how GPO handles icon files for shortcuts. Since the icons are saved in the sysvol area of Active Directory and the GPO configuration affects the appearance of the shortcuts, it might be worth investigating any changes related to GPO behavior in the Windows Update.
Remote Paths in File Shortcut Icons: Enabling the GPO setting "Allow the use of remote paths in file shortcut icons" seems to have improved the issue. This setting might be relevant when the icon files are stored in a remote location, such as Active Directory in your case. However, it's unclear why this setting was working fine before the Windows Update.
Icon File Format: Check if the icon files used for the shortcuts are in the proper format (e.g., .ico format). Sometimes, if the icon file is in a format that Windows cannot read, it might cause issues with the display of icons.
Windows Update Documentation: To understand the specific changes introduced by the KB5028166 update, it would be beneficial to refer to the official documentation or release notes provided by Microsoft. Unfortunately, as of my last update in September 2021, I do not have access to specific details about this particular update. You may need to refer to official Microsoft sources for the update details.
Feedback and Support: If the issue persists and you cannot find a satisfactory solution, consider providing feedback to Microsoft and seeking support from their official channels. They may be aware of the issue and could provide more insights or even release a patch to address it.
Since you mentioned that uninstalling the update temporarily resolved the issue, it is likely that the update introduced some changes affecting GPO behavior or icon handling. Investigating the update documentation and seeking support from Microsoft should be the next steps to gain a deeper understanding and possible resolution of the issue.
I used AI provided by ChatGPT to formulate part of this response. I have verified that the information is accurate before sharing it with you.
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