Just rebuilt my app using the Android 5 SDK and associated appcompat.
Seems to work fine but my app icon is no longer showing in top left hand corner. The icon to open
I too noticed that the default projects created by Android Studio were missing the icon in the action bar. Here's how I fixed it.
Disclaimer: This solution will result in in the Material theme being dropped in favor of the older JellyBean/Kitkat styles.
First, change themes setting in styles.xml from this: