First of all, you're running a modern Mac with a 256 GB hard drive. Those are only suitable for some kind of single-app kiosk configuration. Maybe a card catalog computer in a library, or a directory listing in an office building. Someone who does nothing but look at LOLcat videos all days needs at least a 500 GB drive. You're using Xcode. You need a new computer - end of story.
Assuming you don't like that advice, which I would expect, what else could you do?
Double-check what's going on with those configuration profiles. I've never seen anything with just "com.apple." listed twice. Configuration profiles are a real challenge. They are normally only used by large enterprise users. Sometimes Apple uses them for odd things too, like ScreenTime at one point. But there are so many variations that it's impossible for me to debug them or even know what they should look like. I include them in an EtreCheck report to let people know that a computer has certain low-level customizations. Those two "com.apple." entries could be leftover junk data perhaps. I just don't know.
You've installed MacKeeper and then didn't correctly uninstall it. That's left the key, low-level system extension component running out of control. Of all the "clean up" apps, none has a worse reputation than MacKeeper. But ironically, the one thing MacKeeper does do well is uninstall itself. Perhaps you used some "app zapper" to try to remove it? Luckily, as of macOS Sequoia and Tahoe, you can now remove these orphan system extensions. Go to System Settings > Login Items & Extensions and scroll down to Extensions. Find the MacKeeper extension and click the tiny "..." button. You'll get a pop-up menu where you can remove the extension and then restart. This alone could easily fix the problem you've been experiencing.
Something else is unusual with Grammarly. It's showing up with a "/Users/***/" path. Normally, these apps install into your home directory and EtreCheck redacts those to show something like "~/Library/". You can see that many times in your report. But there's also a fallback in case something really funky is going on and it's showing some other account's home directory. Your report is displaying the fallback. That's really bad. That means that there's been some unholy cross-pollination between user accounts at some point in the past. Whatever caused this could also easily cause the icon services problem.
Your nominal I/O usage is at 393.98 MB/s. That's crazy high.
It seems related to your unusual CPU usage too. All those values are way too high. And there's update_dyld_sim_shared_cache, which is related to the simulator component in Xcode. This is something else which is barely two degrees of separation away from your icon services problem.
In order to recover this computer, you'll definitely need to erase the hard drive and reinstall the operating system. I recommend that you don't try to restore anything. Just setup a new account. Maybe you could use the iCloud trick.
However, this machine is never going to run Xcode. If you're not careful, Xcode can bring a 1 TB drive to its knees in a matter of minutes. I'm surprised you could even install Xcode in the first place, let alone run it. On my 1 TB machine, the Xcode and its internal data take up about 95 GB. And quite frankly I'm surprised it's that low.
