Although a long time ago, this has now been fixed… Since I’ve taken over development of the skin, I haven’t got aware of this request/issue, but @Donderstraaltje has made me aware of this on GitHub recently. See this commit for the fix which will be available with the next OSMC update: Add option to show lock icon for encrypted PVR channels
This change makes it the default behaviour to show icons of encrypted PVR channel icons. The setting gives the option return to the old default behaviour - showing a lock icon instead of the channel icon.