Thank you for reporting this issue, we are aware of issues scaling flags in 2023.1 Preview 2 and have reported this to our development team to be resolved. Please stay tuned for update announcements, along with their Release Notes available here that will contain more information on fixes and known issues for each update.
The flag issues reported above should have since been resolved. If you are still experiencing issues with these, please submit a bug report for our team to investigate using the Contact Us button on the community front page here: https://twinmotionhelp.epicgames.com/s/