In my case, my project is a Unity project so I am setting(or changing) my icon on the Unity project and there was no change.
What I have done to change;
Found the AppIcon.appiconset folder in Xcode Project folder and deleted(Finder on MacOs).
2)Find my AppIcon in Unity-iPhone->Data->Images (Project Navigator in Xcode)
3)Drag and drop Images to some where in the main project folder (Project Navigator in Xcode)
And that fixed my nightmare.
Hope helps someone.
makkuzu
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Updated Monterey 12.0.1 & Xcode 13.0 and still gettin "Cannot find type 'PhotogrammetrySession' in scope" error.