All of the major gaming platforms now regularly release firmware updates for their systems. Those updates are meant to fix problems, not create them, but when Nintendo issued firmware version 3.0.0 for the Switch, it introduced a fault related to the battery indicator.
As explained by Nintendo Life, some Switch owners who installed the new firmware noticed that the battery indicator stopped being accurate. In each case, the Switch would no longer fully charge or would reach zero battery and continue to function. Clearly Nintendo had introduced a bug rendering the indicator inaccurate and therefore quite useless.
This week, firmware version 3.0.1 was released and resolves the battery indicator problem. However, in order for the fix to work, you'll need to jump through a few hoops in the Switch's system settings, as well as charge and drain your battery for a day or two (no, I'm not kidding).
The process involves seven steps which are fully detailed on Nintendo's support site. But basically, you need to install the firmware, disable auto-sleep, charge the Switch for three hours, then let the battery run down for up to four hours, then turn the Switch off and leave it for 30 minutes, then repeat the whole process possibly several times.
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It's quite a tedious process that will take you many hours, if not days, but apparently it's required to sort out the indicator fault. So please, follow Nintendo's instructions carefully! As to why they can't simply reset the indicator functionality and have it properly detect remaining battery life, that's a question Nintendo has yet to answer.