After closing the Workshop activity, students that didn't get the passing grade were auto-awarded badge that should be awarded only upon activity completion. Gradebook correctly shows their grade in red (meaning they failed), and checkbox next to the activity also shows red 'X'. So if the activity wasn't complete, badge shouldn't have been awarded.

Steps to recreate:

1. Created workshop and defined grading
   https://www.dropbox.com/s/wcrawr3m5kpht7q/photo-1.png?dl=0 
2. Defined activity completion settings within workshop
   https://www.dropbox.com/s/rddk40aih453r3f/photo-2.png?dl=0 
3. Created badge and added criteria to award it upon Workshop activity completion
   https://www.dropbox.com/s/dimoeoedcvp85ae/photo-3.png?dl=0
   https://www.dropbox.com/s/rvbddqzagsgx5xg/photo-4.png?dl=0 
4. Student gets failing grade for Workshop submission
   https://www.dropbox.com/s/11sprnd4rnq2xww/photo-5.png?dl=0 
5. His Activity Completion and Gradebook correctly show that he failed
   https://www.dropbox.com/s/xqolc4scgdl7kk3/photo-7.png?dl=0 
6. Badge gets awarded anyway
   https://www.dropbox.com/s/oi55urjbz8lumqa/photo-6.png?dl=0

Issue was recreated on https://moodle.org/demo