To clarify, this isn’t the root-cause; the badges API used on the website will return inactive badges if you have autorisation to view them on the creator dashboard. The issue here appears to rather be that the API isn’t doing so in this case.
After looking into more, creating my own group and messing around with group permissions it appears that it’s just a problem with group permissions. But for whatever reason, the permission that is required to see in-active badges is “Configure avatar items”, which is not even apart of the creator hub. I’ll update the bug report now.
Good news – we’ve moved badge permissions to Creator Hub. You should be able to see inactive badges when given publish permissions for the experience. Thanks again for the report.