What is PGM?

Greyscale, uncompressed, with a header you can read in a text editor. PGM is part of the netpbm family, and it exists because sometimes you want pixel values you can do arithmetic on without a decoder in the way. Image processing and computer vision code loves it.

What is ICO?

Windows icons, and a container rather than an image - one file holds the same icon at several sizes, so Windows can pick the right one for a title bar or a desktop. It tops out at 256x256 and supports transparency, which is what stops an icon looking like a sticker.