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There's an empty file called Icon^M occasionally in my directories. I guess this stuff predates OSX, and it's a file that gets created by the finder to be backward compatible with OS 9. Yet, this is my guess. I tried to google, but given the name, I had some trouble finding something meaningful (in the sense that it explain what the file is and where it comes from, historically).

If you have any reference at hand I would enjoy learning this bit of lore.

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Can you tell us in which folder you have this file? – Loïc Wolff Oct 13 '11 at 15:54
up vote 2 down vote accepted

Do you have by any chance a custom icon you set up for that folder?

I believe this is what this file is there for.

This Super User answer has the answer.

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