Activity badge image does not update if already awarded.
Here's the sequence to recreate:
-Create a badge, upload an image, set rule
-Award badge, check it is shown in users activity
-Delete/reupload image to badge in dashboard
-Check activity again
Badge will be updated on profile section beneath user picture, but the activity image will remain the same.
I noticed they use different class names for them, ProfilePhotoMedium does not update with changes
ProfilePhotoSmall does update.