Looking at the file in UE4 you need to adjust the max distance that you’re painting for your cloth.
The value that you used 30 is rather low, especially for the end of the flag. Longer distances will be more accurate for realistic cloth rendering.
Here is an example:
The one on the right is your original flag cloth asset.
The one on the left is the same flag cloth asset that I re-did the max distance painting for. I increased the distance to 100. It can probably be a little lower than that and still be as accurate. The problem with 30 as a distance is that this is the amount of distance the cloth can move in any direction. the end portions of the flag tend to look like they’re hanging mid-air because of this. So as you can see in the redone one the cloth is much more accurate.
In this example I also turned down the wind to 0 so that it would fall completely.
This is a gif of the flags with the default wind actor settings: Dropbox - Error
