I’ve done some Googling and code inspection and don’t yet know what the issue is. Have you perhaps tried uploading the Favicon again? Perhaps rename and attempt to re-upload? Let me know, I’m sure we can find a way to get through this challenge.
Have you tried a brief plugin conflict test to see if there is a working baseline to be found? If you temporarily deactivate all plugins, is there any change in Chrome? If you’re using a caching plugin or an optimization plugin, clear those before deactivation.