Yes, this was definitely a pivotal moment in the film. Nick certainly knew the public prejudice against foxes (including Judy's). He could've just stood by and said nothing while Judy turned over her badge and had her life's dream come crashing down. Nobody would expect any less of him. But he'd spent enough time with Judy to empathize with her, at least in part. Clever as he was, he obviously realized the ZPD stacked the deck against Judy, setting her up to fail. Maybe he saw a bit of himself in Judy. In any case, it took a lot of courage for him to come to Judy's defense. It proved to Judy (and perhaps to everyone else) that he was willing to extend a little bit of trust, and that was a big step for a fox who'd likely spent his whole life blocking people out.Your picture captures the symbolism of this moment quite well.Nick isn't just standing behind Judy; his fingers pin that badge against Judy's chest, while his arms wrap around her form as if shielding her. His stern expression makes it clear he won't back down.