It personally doesn't bother me that much. At a high level, it just seems counter-intuitive to have such an item in a game mode that the majority players actively avoid because of toxicity. Also if nobody cares about a bruised ego, then why do you think its nice for people who hurt their team to get flagged? Why would it matter? It sounds like you're the one who cares by wanting them to have one.

For anyone who may not be familiar, the act of flagging someone is when you summon a flag (collectible item) on an enemy player that has recently been defeated. To me it kind of seems like the flag item's entire purpose is to promote and foster toxicity/unsportsmanship. I can't really think of any legitimate use-cases for the flag item, nor have I seen it used in any other way. I would suggest disabling the use of flags in ranked and unranked warzones to create a better experience for all players. Obviously this wouldn't eliminate all cases of toxicity but would be a step in the right direction.

I'd also like to report that 12600k seems to be having issues as well. I know a few people affected by this.