Was about to open this issue myself when I found yours. This is also happening to me.
Steps to reproduce:
Add various site-specific settings for websites with a favicon set.
I have observed incorrect favicons in the Cookies, Page Zoom, Reader Mode lists so it appears to be in all lists containing icons.
The correct favicon should be displayed next to the corresponding website on the list.
Orion, OS version; hardware type:
Orion 0.99.111-beta (Webkit 613.1.12)
MacOS Monterey 12.1
16" MacBook Pro 2021