This css should fix the issue:
ul.products li.product figure.product-transition-fade > a > .product-image {
z-index: 3;
}
.woocommerce span.onsale, .woocommerce .wc-new-badge, .woocommerce .out-of-stock-badge, .woocommerce .free-badge {
z-index: 4;
}
Does anyone have a link for the layout issue – I can’t think of anything in the update that would cause that, and can’t replicate here.
– Ed