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Thanks RiK-- I tried that too. The parent items are no longer shown if you tweak that setting, it's true, but they *do* still seem to get counted in the "no context" badge count. This is what I found so unnerving. I had two projects that were overdue because of weather conditions, and OF was insisting that I had two overdue, contextless actions, yet I couldn't find them anywhere. Reported it to the ninjas and was told it's a bug that "hopefully will be fixed soon".

For now, to preserve my sanity, I've resorted to leaving the "show parent items in context view" setting on. I heartily dislike seeing projects in my context lists, but at least I'm not staring at a "no contexts" badge count that I can't account for.