The 21-year-old model and her sister Kylie, 19, have both apologised for the $125 garments, which saw their faces printed over the top of portraits of music icons including B.I.G., Tupac Shakur and Ozzy Osbourne, and Kendall is reported to be particularly disturbed the uproar they've caused.
A source explained: ''Kendall is very distressed over this.
''She and Kylie chose people they look up to and admire, they only meant it as an homage. Right now she's so embarrassed that it's blown up in their faces in such a major way.''
Kendall suffered another PR disaster earlier this year when a Pepsi advert in which she starred was pulled from the air, with critics saying the commercial undermined the Black Lives Matter movement.
And Kendall is said to be ''radioactive'' over the latest controversy that threatens to blight her modelling career.
The source told HollywoodLife.com: ''As far as Kendall's concerned this is a disaster.
''She's mad because she feels like she dropped the ball. She's very busy and is hardly ever in the same city for very long so things can get out of hand much easier.
''Hopefully with time, she will calm down - but at the moment she's pretty much radioactive over this.''
Kendall and Kylie withdrew the T-shirts after Notorious B.I.G.'s mother, Voletta Wallace, accused them of ''disrespecting'' her and the family of the late rapper, whose real name was Christopher Wallace.
Voletta wrote on Instagram alongside a picture of the shirt with an X over it: ''I am not sure who told @kyliejenner and @kendalljenner that they had the right to do this.
''The disrespect of these girls to not even reach out to me or anyone connected to the estate baffles me. I have no idea why they feel they can exploit the deaths of 2pac and my Son Christopher to sell a t-shirt. This is disrespectful, disgusting, and exploitation at its worst!!!'' (sic)''
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