A PNG image is to be used as the icon foreground, and the background should be completely transparent.
Using Android Studio > New Image Asset > Configure
Android Studio > New Image Asset > Configure
Method 1:
if you have a png, just copy it and paste it in drawable, and refer to image name from manifest.
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Method 2:
Goto file > new > image asset, make sure you select a png image (with transparent background) & set background shape to none.