Icon option (-I, --icon) not working on Wayland

Setting the icon of an xfce4-terminal window using:

xfce4-terminal -I test.png

isn't working on Wayland. It's displaying the original icon (the icon from the xfce4-terminal that's starting the new one). I have verified that the "test.png" file exists.

xfce4-terminal version: 1.1.4
Wayland compositor: labwc 0.8.3

I think it's a labwc issue: https://github.com/labwc/labwc/issues/2625

added 3. Need Info 5. Wayland labels