How is this an inappropriate GamerPic?

You have to contact the enforcement team at enforcement.xbox.com and ask for a case review

two things first you aren't supposed to use copyrighted material

Meaning if it isn't on the server and it isn't your own design but a TV show or anime then you can't use it and yes this is mentioned in the terms of use

Dosen't look inappropriate at all to me and that would make me mad too if my Gamerpic was changed and I got a suspension with no explanation of what I did wrong or what was wrong with my Gamerpic that made it supposedly inappropriate.

Bring up the profile of the person(s) with the offending gamerpic.

Use the console's reporting feature to report that profile for an inappropriate gamerpic.

In the text field provide an explanation why the gamerpic violates the Community Standard. Especially

section IV about keeping content clean

There it says:

"[...]don't:

- Make fun of other people's identities or personal traits.

- Frame a custom gamerpic to make it look like something inappropriate."

With that explanation the Enforcement Team should then be able to enforce a gamerpic change or disable custom gamerpics for the offenders.

My friend, they aint ever going to do anything about it. I've literally been being stalked on xbox since the 28th of last month. Daily harassment from brand new "burner" accounts. i block and report and send screen shots and everything. NOTHING.

It doesnt matter how YOU feel about it, its a clear violation of Xbox's code of conduct. END OF DISCUSSION.