My initial response was surprise, which usually isn't good. I didn't immediately associate the picture with a kraken. Maybe a wastrilith demon, or something similar. A kraken for me has always been a giant squid.
Having said that, I'm growing to like the new depiction. A lot. There are several clear improvements for me...
Firstly, this thing looks intelligent. Previous kraken descriptions could have had squid (i.e. animal) intelligence, for all I knew, which didn't mesh well with the kraken having super-genius level intellect. This thing, on the other hand, has a face that looks smart and actively malevolent.
Secondly, the new kraken looks amphibious. It looks like it could move about on land; maybe a little less well than it could swim, but still. This is a terror that can crawl up out of the sea and go on a rampage. That's very cool.
Thirdly, it's not a squid any more. And the more I think about that, the more I like it. D&D is a game about the fantastic and the mythical. This thing looks a lot more like a mythical beast; a titan out-of-time; an abomination that even the gods might fear.
So, cool. It challenged my expectations, and I'm willing to admit that the new depiction is (at least for me) an improvement. Nice work.