The Apple Shortcuts (which by the way is an acquired app that was not originally designed by Apple) problem indeed is a bug in the way the sheet works, probably because of the custom keyboard like icon picker at the bottom, which is really poorly designed anyway. If you have an iOS device, here’s a riddle:
If your device has a larger screen than the one in the article and you try to recreate it (on ‘My shortcuts’ navigate back, then tap the add folder button), you can choose from a larger set of icons. Someone with an even larger device than yours would see a palette with even more icons. But on your device you can get to these icons as well, try to find out how!