Since you cannot select the Play store image anymore you need to edit some files
NOTE: This may also work in Visual Studio (not tested - some feedback will be apreciated!)
Load the image with SDK manager

Create a device with the correct API and Hardware profile and Finish

Before you start this new AVD you need to Edit the files as follow

Edit config.ini (I use VIM but any editor will work)
Edit the following lines in the file
PlayStore.enabled=true
image.sysdir.1=system-images\android-32\google_apis_playstore\x86_64\
tag.display=Google Play
tag.id=google_apis_playstore
Note: if you are on a Mac with Apple chip, set this line differently:
image.sysdir.1=system-images/android-32/google_apis_playstore/arm64-v8a
- Start the AV Device and check if the Play Icon is available - Test it By logging in!

- ALL DONE!