I have seen accounts of several flags that are recycled, though they are in an earlier time period. Several flags for the light infantry corps (under Lafayette) in the revolution were reused as the several battalions were in a state of flux from year to year. Also some of the standards issued at the very end of the revolution were reclaimed by the government and issued out several years later as troops were raised to go west and fight indians on the frontier. I'm not saying this happens often, but there are a couple of cases when it has taken place.