If you created the badge image inside of Canvas, try downloading the image as .svg or .png, and then deleting and re-uploading the image. This happened to me once about a year ago, and this solution did the trick for me.
Hope this helps! If so, please mark this response with "Accept As Solution" - Thank you!
Thank you for the response. Unfortunately, the badge image is uploaded to Canvas Credentials. I'm unable to duplicate a badge and replace the image file. A use case for this is when a badge is used for B2B situations where the partner's name appears in the title of the badge. All other content is identical. The problem persists, and my workaround is to rebuild the badge from scratch.