New teams showing unread chats when there aren't any

So the underlying problem here is the generally terrible management of screen space and windows in Teams. There are five buttons, but only some of them show?

This also happens in the side bar, where there is room for all the buttons (unless you have lots of app buttons) but Teams chooses to show only some, and you have to "just know" to hit the "..." button to see the other ones.

All of this is worse if you resize the window or zoom the window or if the window is not maximized. C'mon Microsoft, WINDOWS is YOUR product, but your own window management is the worst.

One edge case that happened to me was that I muted a chat that was for a teams meeting I didn't need to be included on. The organizer then sent out a new time series for the same meeting. This invitation caused the meeting chat to be unmuted, and so I had to search through the long list of chats to find it, read it, and then mark the chat as muted again.

Thank You Oliver Poelchau!

I have tried all the reset/delete files processes and as I've had Teams for a while, for both versions! Still seeing a phantom 3 messages in the Teams icon! This is frustrating because now the taskbar item is useless to me as it doesn't accurately tell me when there is a message that I might need to go and look at.

Using the separate setting in chats and channels worked for me. There were chat messages from a group meeting that I was unable to attend. These chat messages do not appear at all when using the combined setting. Upon switching to separate, I could then see then unread chats and once read, the notification disappeared.