What is DDS?
DDS is DirectDraw Surface, the texture format games ship. Its point is that the GPU reads the compressed blocks directly, so BC1/BC3 textures never need unpacking at runtime. FileSorcery reads it and converts out; writing good block compression is a job for a dedicated compressor.
What is ICNS?
ICNS is the macOS icon container - what sits inside an .app bundle. Since Lion it stores its images as ordinary PNGs at a handful of sizes, which is why reading one means picking the biggest member and writing one means rendering several.