Drop an .ico above, get a PNG back that any editor will open.
The .ico format exists for one job: browser tab icons. Windows has used it since 1985 and the web adopted it for favicons, which is why almost every .ico you meet came off a website. Photoshop, Figma and most phone galleries will not touch one.
An .ico is a container, not a single picture. Inside it there may be a 16-pixel version, a 32, a 48 and a 256, all the same artwork at different sizes, because Windows picks whichever fits the place it is drawing. This tool takes the largest, since that is the one worth editing.
Transparency comes through. Favicons are almost always transparent around the edges, and PNG carries that unchanged, and the icon drops onto any background without a white box behind it.
Going the other way - building an .ico from a PNG - is a different job and needs a different tool, because the file has to hold several sizes at once rather than just one.
Drop a folder of them and each comes back as its own PNG.