I remember seeing threads regarding this when iOS 7 updates released, and I went back and looked at those, but a solution was never found. I upgraded to iOS 8.1.1 minutes after it was released and it still shows the badge on the Settings icon. Anyway to clear it? Obviously I have tried turning it off and on again. And I tried having it check for updates again (to which it said I already had the latest version). I am not going to try restoring so don't even suggest that.