The character icon in question is used in part of the game's GUI. It's in the bottom-left, next to your weapon slots, above the armor slot. It's a button to open your inventory. Many people simply press E, but you can click that button to open your character inventory.
Anyway, I think I figured out what's happening. My installation seems to have retained the old files from Factorio 1.0. The character icon was moved from base to core. The new location is: __core__/graphics/icons/entity/character.png
Fix incoming. Thank you for reporting this.