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
[media] (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?