Maximum badge count?

I was recently informed that the formula for badge capacity is 6*number of survivor SLOTS +100

The question of how many badges is the max that can be kept recently came up in our guild while we were discussing them. I managed to dig up this answer from a post from 2018, lol. However, just had a related question(s) that I couldn't easily find.

What happens when you get to the max count--do excess badges autoscrap like equipment, or are you simply prevented from creating new badges at that limit?

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