Well, see this topic:
https://community.kodular.io/t/png-sqaure-icon-uploaded-but-showing-circle-cropped-icon/50477?u=fahadahmad
If you don’t update your app icon to adaptive now, your app’s icon will show up in launcher like in the above topic.
To solve the problem and having a perfectly shaped icon, you’ve to update your icon.
See following gifs
Your icon (inner layer) will remain same but outer layer will be changed according to launcher settings.
And your icon will not be cutout.
https://developer.android.com/guide/practices/ui_guidelines/icon_design_adaptive