Remove default favicon on localhost

To fix this, I went into Preferences, Under the Hood, Clear Browsing Data, and selected all the options with "from the beginning of time" as the date reference. I was hoping to not have to do this and lose all my browsing history/data, but it worked.

For Mac, delete: ${user.home}/Library/Application Support/Google/Chrome/Default/Favicons

For Windows: go to %LocalAppData%\Google\Chrome\User Data\Default and delete favicons and favicons-journal files

Source: http://www.nullalo.com/en/how-to-delete-google-chrome-favicon-cache/ [see #3 in the link]

I find this to be the least intrusive method since it does not delete your browser history or anything else as suggested in the other solutions.