Just as a bit of trivia, the flag depicted is a 50 star U.S. flag. During WW2 Alaska and Hawaii were still territories, so the U.S. flag for all of WW2 was the 48 star version.
And, yes, there are plenty of workarounds for the dreaded swastika flag, ranging from having the flag folded to just turning the swastika into a cross or leaving the central white roundel of the the Nazi flag blank.
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