Yep, it was related to something MS must've changed in July updates. I was able to track down the fix on Reddit.
Here are the notes that I took and applied to our environment to resolve:
Added the following setting to GPO:
Computer Configuration > Administrative Templates > Windows Components > File Explorer > Allow the use of remote paths in file shortcut icons (Changed from Not Configured to Enabled)
- This change fixes the issue with the July MS updates breaking the icon files for DEM placed shortcuts that are pulling from network shares.
