Thank you @ganncamp . I have also raised a support ticket and got the below response as the badges were broken after enabling entitlement. Sharing this information, hoping as it will be useful for others.
Existing badge URLs for private and public projects will need to be updated to use the URL generated on each project page. To assist with replacing the URLs programmatically, the following API endpoints can be used to generate the image URLs and retrieve the badge token for each project:
• api/project_badges/measure
• api/project_badges/token