Is it worth contesting this fine?

I would always contest you have nothing to lose
This.
I'd argue that bay markings are not clear and from the photo, I don't think that's a proscribed sign (per TSRGD 2016).
Per the law; bay markings must be clear and well maintained, with the correct corresponding plate. Anything less is a pretty straightforward win.

Edit: Pepipoo is no more, but the community lives on here: https://www.ftla.uk/index.php
 
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