The current game icon has a low resolution. The highest resolution appears to be 48x48 px, which may look ok at stock Windows devices, but looks awful when scaled relatively big, like in a dock (attached screenshot).
Depending on the taskbar/dock, it may look even worse since the icon has been anti-aliased.
This might not affect macOS devices as they are using apples .icns file.
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Sadly the issue is not resolved with 1.20 pre3, it is still present in 1.20 pre4 (see attachment
(left icon is pre1, right icon is pre4)).
Although the icons are now part of assets in higher resolution (up tp 256x256), I can't see the higher res versions of the icon. I tried to find out, which icon is used and found out that (on my machine) only the 32x32px icon is in use (see attachmet
)
You might be running into MC-165967; try clearing your Minecraft assets folder and check again. If that doesn't work, please file a new bug report.
I've created a new issue for this: MC-262890
Was this also an issue with the old icon used before 1.20?