Contributed activity's busy icon fails to display after resetting containing TreeView's badge state

[kirksl]

Does this issue occur when all extensions are disabled?: Yes/No
Yes

• VS Code Version: 1.72.2
• OS Version: Windows 10 (19044.2130)

Steps to Reproduce:

1. Create a VSCode extension
2. Contribute a View within an Activity https://github.com/kirksl/karate-runner/blob/master/package.json#L71-L90
3. Create a TreeView within Activity View https://github.com/kirksl/karate-runner/blob/master/src/providerKarateTests.ts#L31
4. Show progress indicator on View https://github.com/kirksl/karate-runner/blob/master/src/commands.ts#L478-L482
5. Notice that busy icon shows for Activity's badge
6. Repeat Steps 1-3 only and return here
7. Set TreeView badge to a value > 0
   this.treeView.badge = { tooltip: 'Failures', value: 1 };
8. Notice Activity badge is set to value of 1
9. Show progress indicator on View again https://github.com/kirksl/karate-runner/blob/master/src/commands.ts#L478-L482
10. Notice that busy icon does not show now for Activity's badge
11. Clear badge per API documentation https://github.com/microsoft/vscode/blob/main/src/vscode-dts/vscode.d.ts#L10502-L10505
    this.treeView.badge = undefined
12. Notice that an error is thrown
    Cannot read properties of undefined (reading 'value')
13. Clear badge per undocumented method
    this.treeView.badge = { tooltip: '', value: 0 };
14. Notice that numbered badge on Activity is removed
15. Show progress indicator on View again https://github.com/kirksl/karate-runner/blob/master/src/commands.ts#L478-L482
16. Notice busy icon does not show now for Activity's badge

Expectations

1. Clearing Activity badge per documentation in Step 11 works
2. Clearing Activity badge enables busy icon to work as it did in Step 5

[alexr00]

1. Clearing Activity badge per documentation in Step 11 works

Duplicate of #162900

2. Clearing Activity badge enables busy icon to work as it did in Step 5

Progress should take precedence over the number badge. Looks like we got the priority wrong. Fix coming soon.

[kirksl]

Thank you @alexr00 appreciate the fast turnaround.

[aeschli]

Verified that progress takes precedence over the number badge