Usual brilliant explanation, Jon.
From your detail, you can see how, due to the badge's source, some might think it has an ARP connection.
I bought mine about 15 years ago from Beltring. The seller, who you probably know, had a huge stash of WW2 CD badges from a clearing-out of the PO Stores at Mount Pleasant and, putting 2+2 together, sold them as ARP: I think he said 'MN seamen whose ships had been sunk were conscripted into the local city CD of the UK port where they landed'!
I did figure something wasn't quite right and I'm sure I've seen a wartime photo/picture somewhere of two MN sailors on shore leave with kit bags, wearing BD with these badges.
I suppose the dark blue BD and the similiarity of the crowned 'MN' badge to that of the 'CD' breast badge was too much for the rumour mill/badge sellers to resist...
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