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The initials are built on-the-fly by Zoom from the first letter in the first two words of your Display Name.
I think if you only want one letter, you're going to have to settle for a 1-word Display Name... but you can probably build a compound Display Name with periods or hyphens. I haven't test this... but seems like it would work. Fred-Smith or Fred.Smith instead of Fred Smith.
An appropriate image would be even nicer. You could create an image in any color with a background and a single letter, and upload it for your profile image.