radio geek
I'm an ex-radio designer. Sounds like the ICOM doesn't have a very good front end design, and likely a somewhat simple squelch circuit as well. The off-frequency strong transmit signal from the Garmin is getting through the filters, and even though it is mixed to an incorrect frequency, it is so strong that it pushes the IF strip around and the radio "hears" a signal that appears to be on frequency. If the squelch circuit is old-school / analog it will get fooled and open up and let the audio signal out to your ears.
The other possibility is an IF injection problem, where even a radio with a great front end can get interfered with by a strong local off frequency signal. The effect is very similar. Both of these problems are not uncommon in AM radio.
In either case, there isn't a lot you can do. First I'd make sure that you had a good connection to the transmitting antenna (and also that the antenna was good / correct type). If you don't, you'll have a bad SWR and the whole problem will be worse. Moving antennas further apart will help a lot - I plan to put my COM2 (if I have one) on the top of the aircraft while COM1 will be on the bottom.
Assuming the antennas don't solve your problem, you can hook up the interlock. Bascially it willl prevent the ICOM squelch from opening (which means letting audio through the radio) whenever you are transmitting on the Garmin.
Has anyone else had this problem? It's not a big deal, certainly fixable with the interlock connection, but as a radio snob it would bug me
Good Luck!
BTW - if you spend a lot of quality time testing radios, you will learn to appreciate the older radio receiver designs (KX170, etc). Much better than the new stuff. Great receivers, but big heavy, limited features, etc.