When I disable thumbnail preview, I like my folder icon, but I also lose photo preview. How can I get the folder icon like second one along with having photo preview in thumbnail?
I compromised to use a 3rd party tool.
I think thumbnail and photo previews are one and the same, so what you ask for is impossible without a 3rd party tool (and I'm not too sure about that either).
This is a Windows Explorer option (Unless you are talking about the desktop. You cannot do this in the desktop to my knowledge.).
When viewing the folder in Explorer, click View --> Thumbnails. This will cause your icons to display a folder with up to four photos within it.
This is what you will get:
Hope this helps.