diff --git a/ElementX.xcodeproj/project.pbxproj b/ElementX.xcodeproj/project.pbxproj
index 18216f12a..398333e50 100644
--- a/ElementX.xcodeproj/project.pbxproj
+++ b/ElementX.xcodeproj/project.pbxproj
@@ -10425,7 +10425,7 @@
 			repositoryURL = "https://github.com/element-hq/matrix-rust-components-swift";
 			requirement = {
 				kind = exactVersion;
-				version = 26.08.06;
+				version = 26.08.07;
 			};
 		};
 		701C7BEF8F70F7A83E852DCC /* XCRemoteSwiftPackageReference "GZIP" */ = {
diff --git a/ElementX.xcodeproj/project.xcworkspace/xcshareddata/swiftpm/Package.resolved b/ElementX.xcodeproj/project.xcworkspace/xcshareddata/swiftpm/Package.resolved
index 3ab4898ca..8907db9bd 100644
--- a/ElementX.xcodeproj/project.xcworkspace/xcshareddata/swiftpm/Package.resolved
+++ b/ElementX.xcodeproj/project.xcworkspace/xcshareddata/swiftpm/Package.resolved
@@ -167,8 +167,8 @@
       "kind" : "remoteSourceControl",
       "location" : "https://github.com/element-hq/matrix-rust-components-swift",
       "state" : {
-        "revision" : "bb2701951010f08d39627e99a816f532d42e6f62",
-        "version" : "26.8.6"
+        "revision" : "4201e58f36d416dd16673dc7aaebdfbdc90e7d95",
+        "version" : "26.8.7"
       }
     },
     {
diff --git a/ElementX/Sources/Screens/RoomScreen/RoomScreenViewModel.swift b/ElementX/Sources/Screens/RoomScreen/RoomScreenViewModel.swift
index 23be4f835..f1c3f9128 100644
--- a/ElementX/Sources/Screens/RoomScreen/RoomScreenViewModel.swift
+++ b/ElementX/Sources/Screens/RoomScreen/RoomScreenViewModel.swift
@@ -124,9 +124,12 @@ class RoomScreenViewModel: RoomScreenViewModelType, RoomScreenViewModelProtocol
     }
     
     func stop() {
-        // When navigating away from the room, we need to mark the room as fully read.
-        // This does not affect the read receipts only the notification count.
-        Task { await roomProxy.markAsRead(receiptType: .fullyRead) }
+        Task {
+            // When navigating away from the room, we need to mark the room as both read
+            // and fully read for Synapse to clear this room from the app's badge count.
+            _ = await roomProxy.markAsRead(receiptType: appSettings.sharePresence ? .read : .readPrivate)
+            _ = await roomProxy.markAsRead(receiptType: .fullyRead)
+        }
         // Work around QLPreviewController dismissal issues, see the InteractiveQuickLookModifier.
         state.bindings.mediaPreviewViewModel = nil
     }
diff --git a/ElementX/Sources/Services/Client/ClientProxy.swift b/ElementX/Sources/Services/Client/ClientProxy.swift
index 90fdcdc89..55f273299 100644
--- a/ElementX/Sources/Services/Client/ClientProxy.swift
+++ b/ElementX/Sources/Services/Client/ClientProxy.swift
@@ -362,7 +362,7 @@ class ClientProxy: ClientProxyProtocol {
     var isLiveKitRTCSupported: Bool {
         get async {
             do {
-                return try await client.isLivekitRtcSupported()
+                return try await client.isLivekitRtcSupported(fallbackToWellKnown: true)
             } catch {
                 MXLog.error("Failed checking LiveKit RTC support with error: \(error)")
                 return false
diff --git a/SDKMocks/Sources/Generated/SDKGeneratedMocks.swift b/SDKMocks/Sources/Generated/SDKGeneratedMocks.swift
index 8844bcfe3..3fd7fc59b 100644
--- a/SDKMocks/Sources/Generated/SDKGeneratedMocks.swift
+++ b/SDKMocks/Sources/Generated/SDKGeneratedMocks.swift
@@ -1723,34 +1723,48 @@ open class ClientSDKMock: MatrixRustSDK.Client, @unchecked Sendable {
 
     //MARK: - isLivekitRtcSupported
 
-    open var isLivekitRtcSupportedThrowableError: Error?
-    private let isLivekitRtcSupportedCallsCountLock = NSLock()
-    private var isLivekitRtcSupportedUnderlyingCallsCount = 0
-    open var isLivekitRtcSupportedCallsCount: Int {
-        get { isLivekitRtcSupportedCallsCountLock.withLock { isLivekitRtcSupportedUnderlyingCallsCount } }
-        set { isLivekitRtcSupportedCallsCountLock.withLock { isLivekitRtcSupportedUnderlyingCallsCount = newValue } }
+    open var isLivekitRtcSupportedFallbackToWellKnownThrowableError: Error?
+    private let isLivekitRtcSupportedFallbackToWellKnownCallsCountLock = NSLock()
+    private var isLivekitRtcSupportedFallbackToWellKnownUnderlyingCallsCount = 0
+    open var isLivekitRtcSupportedFallbackToWellKnownCallsCount: Int {
+        get { isLivekitRtcSupportedFallbackToWellKnownCallsCountLock.withLock { isLivekitRtcSupportedFallbackToWellKnownUnderlyingCallsCount } }
+        set { isLivekitRtcSupportedFallbackToWellKnownCallsCountLock.withLock { isLivekitRtcSupportedFallbackToWellKnownUnderlyingCallsCount = newValue } }
     }
-    open var isLivekitRtcSupportedCalled: Bool {
-        return isLivekitRtcSupportedCallsCount > 0
+    open var isLivekitRtcSupportedFallbackToWellKnownCalled: Bool {
+        return isLivekitRtcSupportedFallbackToWellKnownCallsCount > 0
+    }
+    private let isLivekitRtcSupportedFallbackToWellKnownReceivedFallbackToWellKnownLock = NSLock()
+    private var isLivekitRtcSupportedFallbackToWellKnownUnderlyingReceivedFallbackToWellKnown: Bool?
+    open var isLivekitRtcSupportedFallbackToWellKnownReceivedFallbackToWellKnown: Bool? {
+        get { isLivekitRtcSupportedFallbackToWellKnownReceivedFallbackToWellKnownLock.withLock { isLivekitRtcSupportedFallbackToWellKnownUnderlyingReceivedFallbackToWellKnown } }
+        set { isLivekitRtcSupportedFallbackToWellKnownReceivedFallbackToWellKnownLock.withLock { isLivekitRtcSupportedFallbackToWellKnownUnderlyingReceivedFallbackToWellKnown = newValue } }
+    }
+    private let isLivekitRtcSupportedFallbackToWellKnownReceivedInvocationsLock = NSLock()
+    private var isLivekitRtcSupportedFallbackToWellKnownUnderlyingReceivedInvocations: [Bool] = []
+    open var isLivekitRtcSupportedFallbackToWellKnownReceivedInvocations: [Bool] {
+        get { isLivekitRtcSupportedFallbackToWellKnownReceivedInvocationsLock.withLock { isLivekitRtcSupportedFallbackToWellKnownUnderlyingReceivedInvocations } }
+        set { isLivekitRtcSupportedFallbackToWellKnownReceivedInvocationsLock.withLock { isLivekitRtcSupportedFallbackToWellKnownUnderlyingReceivedInvocations = newValue } }
     }
 
-    private let isLivekitRtcSupportedReturnValueLock = NSLock()
-    open var isLivekitRtcSupportedUnderlyingReturnValue: Bool!
-    open var isLivekitRtcSupportedReturnValue: Bool! {
-        get { isLivekitRtcSupportedReturnValueLock.withLock { isLivekitRtcSupportedUnderlyingReturnValue } }
-        set { isLivekitRtcSupportedReturnValueLock.withLock { isLivekitRtcSupportedUnderlyingReturnValue = newValue } }
+    private let isLivekitRtcSupportedFallbackToWellKnownReturnValueLock = NSLock()
+    open var isLivekitRtcSupportedFallbackToWellKnownUnderlyingReturnValue: Bool!
+    open var isLivekitRtcSupportedFallbackToWellKnownReturnValue: Bool! {
+        get { isLivekitRtcSupportedFallbackToWellKnownReturnValueLock.withLock { isLivekitRtcSupportedFallbackToWellKnownUnderlyingReturnValue } }
+        set { isLivekitRtcSupportedFallbackToWellKnownReturnValueLock.withLock { isLivekitRtcSupportedFallbackToWellKnownUnderlyingReturnValue = newValue } }
     }
-    open var isLivekitRtcSupportedClosure: (() async throws -> Bool)?
+    open var isLivekitRtcSupportedFallbackToWellKnownClosure: ((Bool) async throws -> Bool)?
 
-    open override func isLivekitRtcSupported() async throws -> Bool {
-        if let error = isLivekitRtcSupportedThrowableError {
+    open override func isLivekitRtcSupported(fallbackToWellKnown: Bool = false) async throws -> Bool {
+        if let error = isLivekitRtcSupportedFallbackToWellKnownThrowableError {
             throw error
         }
-        isLivekitRtcSupportedCallsCountLock.withLock { isLivekitRtcSupportedUnderlyingCallsCount += 1 }
-        if let isLivekitRtcSupportedClosure = isLivekitRtcSupportedClosure {
-            return try await isLivekitRtcSupportedClosure()
+        isLivekitRtcSupportedFallbackToWellKnownCallsCountLock.withLock { isLivekitRtcSupportedFallbackToWellKnownUnderlyingCallsCount += 1 }
+        isLivekitRtcSupportedFallbackToWellKnownReceivedFallbackToWellKnown = fallbackToWellKnown
+        isLivekitRtcSupportedFallbackToWellKnownReceivedInvocationsLock.withLock { isLivekitRtcSupportedFallbackToWellKnownUnderlyingReceivedInvocations.append(fallbackToWellKnown) }
+        if let isLivekitRtcSupportedFallbackToWellKnownClosure = isLivekitRtcSupportedFallbackToWellKnownClosure {
+            return try await isLivekitRtcSupportedFallbackToWellKnownClosure(fallbackToWellKnown)
         } else {
-            return isLivekitRtcSupportedReturnValue
+            return isLivekitRtcSupportedFallbackToWellKnownReturnValue
         }
     }
 
diff --git a/UnitTests/Sources/RoomScreenViewModelTests.swift b/UnitTests/Sources/RoomScreenViewModelTests.swift
index 7744059a5..7ec7a762e 100644
--- a/UnitTests/Sources/RoomScreenViewModelTests.swift
+++ b/UnitTests/Sources/RoomScreenViewModelTests.swift
@@ -11,6 +11,7 @@ import Combine
 import Foundation
 import MatrixRustSDK
 import MatrixRustSDKMocks
+import Synchronization
 import Testing
 
 @MainActor
@@ -305,10 +306,13 @@ final class RoomScreenViewModelTests {
     
     @Test
     func roomFullyRead() async {
-        await waitForConfirmation("Wait for fully read") { confirm in
+        let expectedReceipts: [ReceiptType] = [.read, .fullyRead]
+        let receivedReceipts = Mutex<[ReceiptType]>([])
+        
+        await waitForConfirmation("Wait for fully read", expectedCount: expectedReceipts.count) { confirm in
             let roomProxyMock = JoinedRoomProxyMock(.init(id: "MyRoomID"))
             roomProxyMock.markAsReadReceiptTypeClosure = { readReceiptType in
-                #expect(readReceiptType == .fullyRead)
+                receivedReceipts.withLock { $0.append(readReceiptType) }
                 confirm()
                 return .success(())
             }
@@ -322,6 +326,8 @@ final class RoomScreenViewModelTests {
                                                 userIndicatorController: UserIndicatorControllerMock())
             viewModel.stop()
         }
+        
+        #expect(receivedReceipts.withLock { $0 } == expectedReceipts)
     }
     
     // MARK: - Knock Requests
diff --git a/project.yml b/project.yml
index 039ed0b50..23abdd29c 100644
--- a/project.yml
+++ b/project.yml
@@ -74,7 +74,7 @@ packages:
   # Element/Matrix dependencies
   MatrixRustSDK:
     url: https://github.com/element-hq/matrix-rust-components-swift
-    exactVersion: 26.08.06
+    exactVersion: 26.08.07
     # path: ../matrix-rust-sdk
   Compound:
     path: compound-ios