I think they need a couple more illustrations and this would be easier to understand. I also think it's inconsistent that in the case of den number, the colors go below that, but in the case of a patrol patch, the colors go above that. With no illustrations or photos, one wonders if this inconsistency is intentional. Hmm.
To qwazse, no drama involved, I just want to do it right. With no clear illustration from BSA, it is confusing. Our Cubmaster, an eagle scout and very up on things, also thought the colors went under the patrol patch. I am creating a photoshopped picture to help parents with patch placement, and I wanted to make sure I was getting it right. Once the patrol patch is sewn on, that's it!