@SimGuruModSquad, if this cannot be removed could you please fix it so it isn't being plastered all over the swatch thumbnails? I think we all get that if we're picking a swatch on a custom content item that the swatch itself is also custom content. Some players would like to have the icon...having a large wrench obstructing their view of a swatch thumbnail is probably not really what's wanted. :)
@luthienrising, we're already taking a look at it. I'm not surprised that creators and players alike would prefer to not have this icon...this is especially true now that we have a useful filter that makes an icon unnecessary. :)
ETA: there is a mod at Studio forums
HERE that will get rid of this thing from catalog thumbnails and swatch thumbnails for objects and CAS items. There is a separate mod
HERE that will remove it from the swatch thumbnails only if you prefer to keep it on the catalog thumbnails. Players should pick only one to put in their Mods folder.
Unfortunately, due to the way this was implemented a mod of this kind was the only way to go about this fix.