Hello,
Thank you for posting in the Microsoft community forum.
According to my research, the image service in Visual Studio automatically generates XAML formatted ICONS to support high resolution display (HDPI). This means that you don't need to manually convert the default 16x16 PNG icon to a higher resolution PNG icon.
If you would like to confirm the licensing issue further, you can refer to the documentation of the Visual Studio Image EULA or continue to ask questions in the Visual Studio - Microsoft Q&A. This platform hosts experts who can provide detailed guidance tailored to your situation, ensuring a more precise and effective solution.
Reference:
Images and Icons for Visual Studio - Visual Studio (Windows) | Microsoft Learn
I hope this helps.
Best regards
Jacen