To fix the problem we’ll first try to turn off iCloud Backup on your device, if that doesn’t work then you may have to sign out your Apple ID from the device. The notification badge that is not going away is most likely coming from the iCloud Backup option, either it’s not able to take a backup because of low storage in iCloud Drive or for some other reason. Restarting the phone or opening the Settings app doesn’t fix the issue.
The Settings app icon on your iPhone showing a notification badge for no reason? This is a common problem on iPhone and iPad devices.