I don't know why ICOM didn't design a lot of their radios to mute the mic when it is keyed from the data port in the back. Its easy enough to overcome this problem if you have a micro-miniature relay.
I bought a couple NEC ud2-5nu 5 volt coil relays. They are VERY small and are double-pole double-throw. This way the PTT button can trigger the relay coil, and there are two available contacts on the relay. The first set replaces the PTT button. The second completes the circuit on the mic element.
This mod is not for the faint of heart. I find that using a diamond-tipped rotary engraver tool to cut the board traces works very well. Once the trace is severed the protective coating can be scratched away leaving enough bare copper to solder some small wires to.
I cut the board traces in three places. One in the hot side of mic line. Second on one side of the PTT button. Third on the other side of the PTT button.
The coil minus side goes right to the common ground plane of the board. This gives the relay something to hold it in place. I put it "dead bug style" on the top of the board, since there is plenty of room in the mic case to mount it. The + side of the coil is fed from the PTT button with the red wire. The other side of the PTT button goes to the +5v supply, with the yellow wire back to the 100uF capacitor.
Relay contacts fed with the black wires replace the PTT button. The other relay contacts bridge the place where I cut the mic trace using the yellow wires at the bottom of the photo.
It may not be pretty, but it works pretty well. The Q1 transistor seems to have enough capacity to supply the hungry relay coil another 20mA of current.
Now I can run my Signal Link for our local NBEMS practice net on FM using my favorite IC-207H radio, and not have to unplug the mic every time the SignalLink keys the radio.