When the VFW is closed down, "Fatty" lowers the flag and folds it like you would a blanket or sheet over his arm. It's highly unlikely that a war veteran would do this, as the ritual of folding the flag into a perfect triangle is a deeply held military tradition.
The man trying to buy Cotton's war-trophy canoe (claimed by Cotton to be "Hitler's Canoe") says he is going have to paint over the "swastika on the other side." When Cotton and Hank carry the canoe to the buyer's car the insignia on the other side is an Iron Cross (used on German airplanes), not a swastika.