Here's the reason no one can make a cloned Catalina BOOTABLE ENCRYPTED backup external disks AND change their icon using anything, even FREE icon changers everyone seems so hot to use:
From Bombich Software notes June 2020:
Finder will not show, nor allow you to set custom icons on other Catalina startup disks
Finder will show and allow you to customize the volume icon for your current startup disk, but not for other Catalina-bearing startup disks that your Mac is not currently booted from. This problem is not specific to CCC backups, but we see this frequently because CCC is designed to create bootable backups. This problem is the result of a design flaw in the implementation of custom icons in an APFS volume group. Up to macOS Catalina, the custom volume icon is stored in a file at the root of the startup disk named ".VolumeIcon.icns". To keep the System volume read-only, yet allow the apparent modification of this icon file, Apple chose to create a symbolic link at the root of the startup disk that points System/Volumes/Data/.VolumeIcon.icns. For the current startup disk, this path resolves correctly because the Data member of the volume group is mounted at /System/Volumes/Data. That's not the case for external volumes, those Data volumes are mounted at /Volumes/CCC Backup - Data (for example). As a result, the symbolic link to .VolumeIcon.icns is unresolvable for any volume that is not the current startup disk.
We have reported this issue to Apple (FB7697349) and we are currently awaiting a response.
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I appreciate Taz's help in the past two days. Thank you.
