Ah, rephrasing time: That people find that racist element to the flag when it is flown under the name of 'heritage'. Your German friend was not claiming heritage as much as history; like wise for Pensacola flying five flags.
I mean, and when you look at the definition, it looks even worse.
Cultural heritage ("national heritage" or just "heritage") is the legacy of physical artifacts and intangible attributes of a group or
society that are inherited from past generations, maintained in the present and bestowed for the benefit of future generations.
Cultural heritage - Wikipedia, the free encyclopedia