That is a really good question. I have no idea. The Canadian Sea and Air cadets do not wear an equivalent identifier on their uniforms, just the shoulder titles.
I think because perhaps the "Army Cadets" badge was not always worn with the regimental title and there was a need to quickly and visibly distinguish the cadet from the Army soldier, as they were wearing similar uniforms and often the same accoutrements, etc. On the Army Cadet History site, you can see both identifiers worn in many of the pictures - definately redundant.
Given the size of the "Army Cadets" title, I've wondered if it may orginally have been intended for wear on rank slipons or epaulets? I have never seen in used in such a way, but the size is similar to the regimental tabs.
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