I think, what is happening, is that, the bat converter program, or whatever it is, let's the person change the icon of the resulting executable from the drab application icon. But I'm not 100% on what is happening when they try, wether the program simply doesn't work, the icon isn't showing that they want, or the program is never created is something only the OP can answer.
Either way, the whole idea of converting a batch to a executable for the sole purpose of being able to hide it's execution seems a bit out of the way.