Haha. I love when Amiga users get into arguments.

I just checked mine and for what it's worth, the "SOFT" option does work. I changed mine because I wanted to use a custom icon that's stored in a different place (and commented out the original line), I'll include a screenshot in case this is any help to OP. But I do crazy stuff so maybe it's better to "fix it right" and not follow my example.

OP - try dropping down to a command prompt and checking your version of ram-handler? Should be 44.23, I think there's also a buggy 44.24 floating around out there somewhere.
Another thought - perhaps the icon def_RAM.info somehow got changed to an icon of a different type? For example a Project or a Tool icon, instead of a Disk icon?
You can also do "version c:makelink full" from a command prompt, mine is v45.0 (12/24/2000). Perhaps somehow you have an older version of the command?