No, they were issued sequentially by area and, of course, some areas had more issues than others so (for instance) London NN may have reached 5**** some time before Northern AA
Absolutely that.
for N (London), a conductor badge number N 47xxx would have been issued in the early 50s (this one sticks in the memory from a family member who started on the buses in about 1953)
The highest FF (Eastern) conductor badge issued by 1981 was (from memory) somewhere in the FF 3xxxx range, the equivalent N badge would probably have been just after WW2 in London. and LL (Scottish highlands) didn't even get that high in numbers.
(incidentally, for reasons lost in the mists of time, the Metropolitan - London - area was always single letter N, all the other areas had the letter twice (There is a batch of 'NN' conductor badges in the 12xxxx range out there - as far as I am aware these were never issued, and were the result of a production error)
The policy taken by individual area traffic commissioners in respect of replacement badges in the event of loss, or in the event of people moving from one traffic area to another did vary. Some people who re-located were allowed to keep their old area badge, others weren't. In some circumstances, such people would get issued with 'recycled' badges, others would get new ones.
When it comes to driver badges, there were some anomalies - I'm aware some areas reserved a sequence of badge numbers for people who only held the old 'PSV 4' category (think it was a vehicle size restriction then, but would be similar to the current D1 entitlement) - I knew someone who did a PSV4 test in the 70s and got a badge from a sequence considerably below the range then being issued.
For completeness, the issue of driver badges got more confused towards the end of driver badging, as some areas had run out of badges, others had plenty left, and it was presumably considered more economical to issue 'wrong' badges than order more. LL badges were issued in the Metropolitan area, and the last few drivers in the west midlands (who should have got 'DD' badges) got 'CC' (north west) ones instead. There may have been other similar situations.
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And I should have added a link to
http://www.psvbadges.co.uk/ somewhere - may be of interest.