Hey all I contacted Activision today and logged this glitch for attention; I just got the below reply...
I am sorry to hear about the issue you are having with unlocking the "There is no Cake" achievement.
There will be a patch in the future that will fix this issue, but unfortunately we do not have any date for when the patch will be released.
Well at least its going to be sorted...
Message Me on Xbox Live not on HERE!