Ahh...a slight error, but one that really does not have an impact for VIP players, unless they try to do a multiplayer, something we do not recommend.
Having only one flag selectable is something I do during testing to make it easier to switch countries in a savegame - all you have to do is save, reload and choose another country. All the countries are there, including the ones that normally appear on the top screen like FRA, PRU etc. As this kind of thing is something that players often like to do (start as one nation, take over as another in the middle of a game, esp if it is a nation created via event) haivng only one flag to choose from makes the process of switching countries mid-game painless.
The only problem would be for multiplayer, where you would need to have all the flags shown, if I am not mistaken, so different players can select different nations. However, VIP is really not MP friendly due to the huge number of events - the lag and synch issues would be simply too great.
I will include a Multiplayer version of the load scenario with the next hotfix so that both the single flag and the multiflag starts are included.