How about a third mindset, where after a bad habit, I do a good habit and feel that my bad is compensated by good one?

It will continue to encourage subconsciously that bad habits are o.k. if I do something else to compensate it.

For a simple example, I eat a lot of sugar and then do a 10minute exercise. Then feel good about it that my sugar eating is fine, as I will exercise afterwards anyways. But the exercise is separated from any rewards or motivation and will likely often get skipped when my willpower is low(time when bad habits set their claws on mind).