Why does that app update not clear in App Store on iTunes Sync?

I have noticed this as a problem ever since I upgraded to iOS8. I always update my apps on my iOS devices by a sync with iTunes. The reason I do this is because I do not like the annoying blue dot beside the app after I update it until I actually open the app. I have been doing this successfully for years. Now that I am on iOS8 I still sync to update but the update badge will not reset even though the app store knows the app is updated. The badge only goes away (resets itself) when there is a new update available in the app store. To overcome this I have turn off notification in the app store so I do not have to see the badge on my screen but I don't understand why iOS 8 is creating this problem. This did not occur in iOS 7 or 6. I thought it was initially because I installed a Beta app for Accompli but that was not correct because I did a complete restore and rebuilt my iOS device from scratch, did not install a backup. Is anybody else having this problem?
Here is how to duplicate:
Wait for you to have apps to update on your iOS device but don't update them through the device.  You will need to make sure the auto update for Apps is turned off.
Download the updates for the Apps in iTunes.
Make sure you have the box check in iTunes to for "Automatically install new apps".
Sync
iTunes will sync and update the apps on your device and there will be no blue dots on the update. However, the app store on your device will see that there is no update available any more, the button beside the app in the update section will say open instead of update, but the badge will not reset.  Used to be the badge would reset and they updates would no longer appear in the app store at all.

I assume no one has encountered this before?

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