Unlike non-steam games/sourcemod-drop-in games, games that come off steam don't take the .ico files. not even the ones buried in the .exe file! (as of in this case) They store icons within the librarycache folder inside your steam directory.

Example: C:\Program Files (x86)\Steam\appcache\librarycache

I replaced the TF2 Logo (440_icon.jpg) with what it's .ico file is, to make it accurate to it's files AND IT'S ♥♥♥♥♥♥♥ LOG- (note: it has to be 32 x 32 to fit the peramaters)

Then just restart steam and-
it's that simple?

well, yeah... i guess...

Atleast it worked...