Hi Karthik Gopakumar,
Welcome to Microsoft Community.
We understand the frustration of your device experiencing the disappearance of Linux icons.
This does reduce the convenience of the daily device experience.
Just to date, the Answers community has not received general feedback about Linux icon-specific issues.
Some community members will try to access WSL paths using specific paths.
Accessing Windows Subsystem for Linux from the File Explorer in Win 11 - Microsoft Community

In addition to the potential "bug" you are concerned about, in some early threads, such phenomena may be related to specific registry entries. Here are some related examples. If possible, you can try to check the registry entries related to it.
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No access to Ubuntu files from Linux icon in file explorer - Microsoft Community

Remove "Linux" "partition" from File Explorer after installing WSL - Microsoft Community
How do I disable the Linux icon in File Explorer, leaving WSSL - Microsoft Community

Disclaimer: Generally, modifying registry subkeys or work group is intended for advanced users, administrators, and IT Professionals. It can help fix some problems, however, serious problems might occur if you modify the registry incorrectly. Therefore, make sure that you follow these steps carefully. For further protection, back up the registry before you modify it. Then, you can restore the registry if a problem occurs. For more information about how to back up and restore the registry, click How to back up and restore the registry in Windows - Microsoft Support to view the article.
If I misunderstand your situation, feel free to correct me and share the information.
Best Regards,
Kyo.Y - MSFT | Microsoft Community Technical Support