diff --git a/packages/core/src/common/cluster-types.ts b/packages/core/src/common/cluster-types.ts
index da5d9f5079..ba01489152 100644
--- a/packages/core/src/common/cluster-types.ts
+++ b/packages/core/src/common/cluster-types.ts
@@ -105,7 +105,6 @@ export interface ClusterPreferences extends ClusterPrometheusPreferences {
    * cleared by preferences.
    */
   icon?: string | null;
-  iconBackgroundColor?: string;
   httpsProxy?: string;
   hiddenMetrics?: string[];
   nodeShellImage?: string;
diff --git a/packages/core/src/main/cluster/update-entity-spec.injectable.ts b/packages/core/src/main/cluster/update-entity-spec.injectable.ts
index bdb8a1491a..9942c4061a 100644
--- a/packages/core/src/main/cluster/update-entity-spec.injectable.ts
+++ b/packages/core/src/main/cluster/update-entity-spec.injectable.ts
@@ -23,15 +23,11 @@ const updateEntitySpecInjectable = getInjectable({
         entity.spec.metrics.prometheus = prometheus;
       }
 
-      entity.spec.icon ??= {};
-
-      if (cluster.preferences.iconBackgroundColor) {
-        entity.spec.icon.background = cluster.preferences.iconBackgroundColor;
-      }
-
       if (cluster.preferences.icon) {
-        entity.spec.icon.src = cluster.preferences.icon;
-        entity.spec.icon.background = cluster.preferences.iconBackgroundColor;
+        const source = cluster.preferences.icon.startsWith("data:") ? "src" : "background";
+
+        entity.spec.icon ??= {};
+        entity.spec.icon[source] = cluster.preferences.icon;
       } else if (cluster.preferences.icon === null) {
         /**
          * NOTE: only clear the icon if set to `null` by ClusterIconSettings.