Hello,
I've the same problem. Plus it is not specified who is the badge creator and there no option to notify all teacher in the course...
But concerning the notification, after some test I've found out why the creator wasn't notified when a student was awarded : in the notification settings page (nameofthelms.com/admin/message.php) the Badge creator notifications was unabled when the creator is online.
So I activated it and it works ! (see image below)
The email notification is very short, there's just a link to access the badge without any other data...
Well, I hoped it will help you !