Windows 11 changes how folder customizations work, and what looks like a bug is actually a security upgrade.
This is more of an administrative sanity thing than a problem, per se... I've got a file share full of user home directories, where they can save stuff that they don't need to share with each other.
If folder icons or localized folder names are not showing in Windows 11, add the source to Trusted Sites, remove the Mark of ...
Fortunately, there's an easy fix.