What problem does this address?

We need to update the references (name and logo) from Twitter to X everywhere to reflect their new branding.

Note: Honestly, I don't know if they even decided on a final logo, but I feel like we should start addressing it from our end.

This was originally reported on WP.org forums: https://wordpress.org/support/topic/new-twitter-x-logo-2/?view=all

What is your proposed solution?

Basically, add their new logo/name everywhere. Some examples are the Social Icons block and the embed feature.