Notification Settings do not work as described

In Team Chat, I have my notifications set like this:

However, the Zoom icon still has a badge, and the channel is marked as unread, if people are replying to threads that I am not mentioned or involved in. Is there no way to change this behaviour? I only want a channel to be unread if there is either a new top level message, or there’s a message in a thread I’m involved in (replied to, tagged etc.) 

It makes it so difficult to keep track of messages that are actually relevant to me.