The badge pictured might actually be a Lorioli made prototype, rather than a copy per se. Stefan comments on the quality, which I agree appears quite good. As an aside, the actual production badges seem to all have been marked “ALP” to identify the alpacca (white metal alloy) composition.
As to why this one was never formally produced, I don’t know for certain. But the story may be similar to that of the 65th Pomorski Baon Piechoty. My father served in the 65th and was given the award card in Italy entitling him to wear the badge. But before badges were produced his infantry battalion was shipped to England in late summer 1946. He told me that he recalled there being talk of having the badge made in the UK, but the unit was disbanded shortly after arrival, and with it the plans for badge production.