Hi Mista. I had this trouble, too. But what worked for me, and I hope it is not temporary, is that I put the favicon.ico in ata-images and set the permissions to 644. I selected ata-images etc. at the new place to go for header and favicon AND in ATO/Add a Favicon, I named it there.
I don't see how that could possibly make a difference, but there you go....
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