>>58589856
I too assume that badges only work inside dungeons and only teleport you outside rather than giving you a free ticket home on demand.
As for the Badge vs Escape Orb thing, I assume that using the badge teleports you without your items, so it is more of a last-resort.

Still, for writing I prefer to just not acknowledge the badges as having teleportation properties, otherwise it would take tension away with characters always have that "get out of jail" card.
Same for Reviver Seeds and most Wonder Orbs. They are so convenient/powerful that you would have to constantly write excuses as to why the characters aren't carrying a lot of them at all times.