Bad atmosphere in the mountain 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 am not certain of the 'bad' bit.

'in the mountain refuge' is the wordplay.
'in' says the answer is hidden in the clue.
'FUG' is hidden within 'mountain refuge'.

Can you help me to learn more?

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

I've seen this clue in the Evening Standard.

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