Just wondering why you'd want to make changes once you've made the badge...other than alignment tweaks? I've tried to duplicate your situation with .pdf and .jpeg elements along with merged text and all my badges remain 100% editable.
Perhaps you have the "Group each badge" button selected. It's located on the center, right side of the badge set up menu...just under where you select which lines of text you want to include. If that is the case, you should still be able to move each badge around on the sign blank, but it will not let you edit it.
I'm running SL 9 and have used badge function since version 7, and the only real changes I've noted is that, starting with V9, the badge function does crazy things with blank lines that are in between lines of text. For some reason, SL tends to pull in lines from subsequent lines when you merge a text file or an Excel file. I end up having to use a unique character such as a tilde "~" in my merge file to serve as a place holder in a blank line, and then go back in and delete it out. It can be a real PITA, but it's very doable with the "search and replace" function but you still have to tweak alignment on those particular badges.
I feel your pain. It's awesome when it works, and it's frustrating when it doesn't. We primarily use the badge function for engraved brick stencils...sometimes literally knocking out 300 to 500 layouts per file with just a few clicks of the mouse.
JB