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Chris,
Yes it does support, but the extension .ICO may be misleading. A normal .ico is expected to be a single icon. .DLL, .EXE, .NIL etc are often expeted to be a library resource of icons.
Maybe try renaming it to .dll and retesting.
This works for me.
$frmMain.Icon = "%SystemRoot%\system32\SHELL32.dll;24"
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