Hi, @richardsonje
Would you mind sharing the full detail of your environment:
config.json- NGINX configuration file (is it still the same as this one?)
- Type of push notification server
I would be interested to know how the proxy breaks the badge icon as I personally have not encountered such issue before.
Another thing that I would like you to try is to sign up for the community.mattermost.com server and test if the unread badge breaks over there too. Thanks.