OK, I will show my ignorance. Are we talking about the yellow folder that represents AC as its icon?

Try changing dpi from 120 to 96.
Are you using 32-bit color?
What video card are you using?

I have never had a pixelated icon for AC.

I think the icon is fine. You can always change the icon. There are free icons out there. Most that you download contain like 50,000 icons.

Bert
Pediatrics
Brewer, Maine