Awarded badge for activity completion, despite not receiving a passing grade

Edit: Summation- Badge award criteria should account for COMPLETION_COMPLETE_FAIL when calculating award criteria as this marks the activity as 'Complete'. This would also bring the award criteria in line with the 2 cases highlighted below.

Assignment activity, and similar to https://tracker.moodle.org/browse/MDL-70930

If you set up an assignment activity with a passing grade, and grade 1 student and passed and one student as fail, you get the expected 'red cross'/ 'green tick' on the activity completion (receive a grade).

If you THEN create a badge based on the completion of the activity, and enable it, it will award the badge to the passing student only.

However, when the badge is enabled, it will award badges out to any user that completes the activity - pass or fail.

Would like to see a 'receive passing grade' in assignment activity completion OR would like to see the badge be able to recognise, after it has been enabled, the pass/ fail state. Seems strange that with retrospective grades it is able to distinguish, but once enabled, not.