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.
What is JPG?
JPEG is the format photographs live in. Its compression is lossy - it discards detail the eye is bad at noticing, and discards a little more every time the file is re-saved - which buys enormous size savings on photographic images and makes a mess of screenshots, logos and text. It has no transparency.