Tahoe uglifies icons by ensquircling them (and I would argue violates developers trade marks and rights in doing so, but I doubt they care much about that). Thankfully they still respect the user just enough to honour the custom icons. This macro grabs the Keyboard Maestro icon from the Keyboard Maestro application and then sets the Keyboard Maestro and Keyboard Maestro Engine custom icon to that. You'll need to relaunch the Keyboard Maestro editor and Engine for the changes to be noticed. I imagine a similar macro would work for other applications.
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Aloha @peternlewis
My observations.
After running the macro and restarting both the editor and engine I see the icon has been returned to your design in /Applications and also when it appears in the Dock.
I have configured my Dock to have /Applications as a folder. I have this folder configured to display its contents as a grid.
Using a single mouse click on the folder displays its content and the KM icon is not updated to your preferred design. (I recognize the irony as I am using a mouse and not my keyboard 
)
A system reboot corrected this last icon display issue.
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The system caches icons (as does Keyboard Maestro and likely other apps including system apps), so yes, sometimes these changes take time.