Hello,
this is wrong, of course. The problem is that there are no flags for languages. Flags are for countries. But since a lot of people still want to use flags to represent languages, we didn’t remove them, yet.
If you want to display a flag, then you can edit the according site and provide custom flag image URL. Just go to /wp-admin/network/site-settings.php?id=1&extra=mlp-site-settings and enter the absolute URL in the Flag image URL input.
You can find all flags shipped with MultilingualPress in wp-content/plugins/multilingual-press/assets/images/flags. If you want to use one of these, just provide the full URL (e.g., http://example.com/wp-content/plugins/multilingual-press/assets/images/flags/de.gif). If you want/have to use a custom flag image, the size of the default ones is 16 x 11 pixels.
Kind regards,
Thorsten