VS Code Icon not updated in Big Sur

Fixed thanks to this suggestion

From the link above:

  1. Restart your dock via killall Dock in the terminal

  2. Run these scripts in your terminal (which updates the timestamp of the icons):

    sudo touch /Applications/Visual\ Studio\ Code.app
    sudo touch /Applications/Visual\ Studio\ Code.app/Contents/Info.plist
    sudo touch /Applications/Visual\ Studio\ Code.app/Contents/Resources/Code.icns
    killall Dock Finder
    

    Note: For Insiders and Explorations, simply append \ -\ Insiders or \ -\ Exploration to each version name reference.

  3. Force the IconService cache to be rebuilt using these steps:

    1. Remove the main IconServices cache store:

      sudo rm -rfv /Library/Caches/com.apple.iconservices.store
      
    2. Remove the subsidiary store, which includes the Dock icon cache too:

      sudo find /private/var/folders/ \( -name com.apple.dock.iconcache -or -name com.apple.iconservices \) -exec rm -rfv {} \;
      
    3. Restart and give your Mac plenty of time to rebuild the caches.