Update 11/14/2014: this information is now outdated. The problems described below have been resolved with the update to version 1.2.5 of the Pogo Games App.
An update is now available for the iOS Pogo Games app as of October 15th, but it’s recommended at this point that you do not update the app yet because the app is not allowing signed-in Club Pogo players to play for badges.
If you have updated, do not pay to upgrade your membership. Pogo_Cactuar has given the following instructions: “The process of linking your Club Pogo account to the app has now changed. You will need to scroll to the bottom of this screen where you will see an ‘Update Membership’ button. You then need to click it, login with your iTunes password and then you should be good-to-go. All of the info is included above this button.” Players have been reporting they are unable to replicate success with this.
Additonally, Pogo_Cactuar confirms: “You will not be charged. You will be linking your Pogo account to the itunes account, which will stop the prompt asking for 2.99 to play for badges or no longer see ads.”
If you updated the app and are stuck with the “Upgrade to Earn Badges” message, you can still earn badges. Just play the required game, keep count of your own requirements, and when you have completed enough, log out of the app. When you log back in, your Pogo.com account will have the badge.
If you have purchased the $2.99/£1.99 ad removal/upgrade to earn badges, you can request a refund by reporting the problem via iTunes. You will need to log in to your account and find the invoice ID number. (Thanks Storm!)
Update 10/17: see the comments for some great tips and more updates. The short version of the updates is: don’t update the app, and if you already did, don’t repurchase the upgrade. Pogo is working on it.
Thanks to Caren for spotting the ‘official’ response deep in Pogo’s forums!