So currently if I place assets in src my assets folder path is not being read.
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The only solution I could find for it was to place the assets inside the pubic folder (because I found the favicon icon placed there in this version)
This is happening with recent Angular 17 repositories, in my old angular 17 repositories I did not have to change the path of assets folder.
Place the assets folder inside the pubic folder (because I found the favicon icon placed there in this version) and it will than recognize the assets. This issue was found in Angular 17