Hello,
this user who I am in a PM with got TL3 a few hours ago today. However, the badge is badge being strange because the Regular badge only shows up when you are in a normal topic they have posted in. But in a PM it shows that they are a Member
Here are the pictures to show you. They are taken today as a live example of what I mean.
Give a daily routine chance to run and in a few hours you should see the change across the board (everything reflect the “Member” status). The reason for their updated status in the PM to you is probably because you are an Admin or a Mod who would see the update. Just give it a little time and it will show up to all the other topics and on their v-card.