Len,
I have never heard this before..
When John McCown's Division was sent to Chattanooga to reinforce Kirby Smith before the KY Campaign, they adopted a blue battle flag with solid white Southern Crosses and no stars, also bordered in white. Since McCown was of Scottish heritage, he tweaked the flag of Scotland for his division. This may have been in response to the other reinforcing brigades of Preston Smith (Polk's Corps) and Patrick Cleburne (Hardee's Corps) bearing blue flags of their respective corps.
We just don't know much about these flags at all.
Greg Biggs