It's not burned. Most of these just look hideous like that.
It's a "genuine" so-called "Bacqueville" or "French-made" badge, only collectible if you're into the fringe market (although anyone trying to sell one will tell you otherwise).
The whole controversy is covered in multiple threads ad nauseam if you search under "Bacqueville", after which point you can take sides.
Some like to look at the polling thread and claim that "most" folks like them, but it's probably time for a new poll. The best you could say about them is that the possibility hasn't been ruled out that they may have been unsanctioned and produced unofficially before war's end and never saw the light of day as official awards or even private purchase until many years later. At worst they're just a post-war hoax.
Here's another example that looks very similar to that one.