Bad atmosphere in a refuge (3)

I believe the answer is:

fug

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'bad atmosphere' is the definition.
'fug' can be an answer for 'atmosphere' (fug is a kind of atmosphere). I'm unsure of the 'bad' bit.

'in a refuge' is the wordplay.
'in' indicates the answer is hidden within the clue.
'FUG' is hidden in the letters of 'refuge'.

Can you help me to learn more?

(Other definitions for fug that I've seen before include "Warm, stuffy atmosphere" , "Fetidity" , "Close atmosphere" .)

I've seen this clue in the Evening Standard.

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