Based on the guidelines provided in the documentation Module Maintainers: How to update projects to be compatible with Project Browser - Logo:

Create a logo image file and add it to the project's repository.

  • Create a logo that is 512x512 square dimension in PNG format without animations. Suggested file size should be 10k or less. (Please note: you should not round the corners in the PNG itself or include the name of the module in the logo, unless there is some compelling branding reason.)
  • Use a lossy image tool (such as pngquant) to reduce file size while keeping the image quality at around 80%. Try to compress the file as much as possible, for example aim at ~8KB.

 
See examples of logo.png files in the modules listing:
https://www.drupal.org/project/project_module
 

Similar issues:

 

Examples of logos:

Toolbar logo:

CommentFileSizeAuthor
toolbar-logo1a.png5.19 KBdydave

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