It should still work. 
Looking at your screenshot it may be that at least those first two (First Quote and Welcome) were awarded before you had the setting enabled and are being surfaced now due to the change in the notification menu (ie. they were unread, and are now at the top of the list).
Using my extra-special admin eyes, it doesn’t look like you’ve received a notification for any new user badges apart from those two back in 2020?