One of our curricula is organized by chapter. The learner can complete the chapter in any order and there are ILCs sprinkled in, as well. The ability to award the competency/badge upon completion of the chapter would provide a much better experience than just assigning it to a random class in the chapter.
I will second this, but go further to suggest that there be an option to attach competencies to specific questions in the question bank. This is a feature that is present in most academic LMS.