Same here before, but now the xcrun devicectl device info appIcon command succeeds on the following environment.
macOS Sonoma 14.1 (23B74)
Xcode 15.0.1
iOS 17.0.3
$ xcrun devicectl device info appIcon --device <device_id> --app-bundle-id <bundle_id> --width 512 --height 512 --scale 3 --destination appIcon.png --allow-placeholder true
09:42:00 Acquired tunnel connection to device.
09:42:00 Enabling developer disk image services.
09:42:00 Acquired usage assertion.
Application Icon Image Information
• Image file written to - <a file path>
• Is Placeholder - false
• Size
• Height - 176.0
• Width - 176.0
• Scale - 3.0
• Pixel Size
• Height - 528.0
• Width - 528.0