Didn't ever test 1.02 but 1.03 works perfectly here, I've changed all my icons to png and never going back to the old ones...
Before enforcing that just try a recent whd game installer. It calls upon icons to show you what icons you can install for the game. Powericons 1.02 and 1.03 is crashing the system when this action is called. There are probably other issues but this is the one that stands out for me. Tested on real Amiga and uae, same effect. CrAsH / Recoverable alerts!
1.00 and 1.01 doesnt seem to have this issue. Before blaiming the installs, keep in mind that its PowerIcons thats the massive hack and breaking stuff. Ill keep on using 1.01 for now since it seems most stable.