We eventually got a response through App Store Connect feedback. They said escalated the issue to engineering, but we haven't heard anything in a few weeks:(

Same here. There's been no response from our feedback request. I just attempted contacting apple through: https://developer.apple.com/contact/topic/select. Hopefully, I will have more luck through that channel. I'll let you know if we get a resolution.

Thank you. This is still happening. I filed a ticket through Feedback Assistant (#11404124)

I was doing that. Turned out it was working after all, I was just thrown off by the little blue circle added to Test Flight builds on the home screen. Kinda silly. Thanks for your help!

Thanks, but unfortunately not:( I've found a ton of stackoverflow threads all saying the Bundle Display Name will be what's displayed with the Icon on the home screen. This is the case until I upload the build to Test Flight and download it to device. The Icon name shown is what's setup in the App Store, not the shorter Bundle Display Name. I wonder if something changed on Apple's end when processing the build? I don't think it's XCode, since I can inspect the plists in the IPAs and things are named correctly there.