The panel title badge theme was changed in #236448 (released with 1.97.0) to use the activityBarBadge color style. Not sure this was the right choice. For the activity bar badge it's useful to have a color you notice instantly. Be it for unsaved files or changed files for git. That's not the case for panel badges. Especially for bigger projects I find it's quite common to have a lot of minor problems in the existing code. The previous style allowed for it to fade in the background which was completely fine. That isn't possible anymore.

I understand that some users might prefer a different style to background.badge. Would it be possible to add a new color variable to allow the user to customize it? Maybe panelTitleBadge.background/ panelTitleBadge.foreground?

/CC @benibenj