Nice to hear back from you.
The flag that Westerhold took was that of the 23rd Virginia Infantry REGIMENT - not battalion. The flag you have is for the 23rd Virginia Battalion and that is based on the battle honors on the flag. The 23rd VA Infantry Regiment did not fight in any of those battles - so we are talking about two different units here.
The 23rd Virginia Battalion's actual flag is in the Museum of the Confederacy (it might also be that for the 22nd Virginia Infantry - my ancestor's regiment). This is a VA state flag and it was taken at Third Winchester, VA in September, 1864. This flag is WD 176.
The 23rd Virginia Infantry regiment, taken by Westerhold, is WD 128. It is an Army of Northern Virginia Third Bunting battle flag and it was taken at Spotsylvania in May, 1864. This flag is also in the MOC.
The 23rd VA regiment's flag would have been replaced by another ANV battle flag but of the 4th Bunting issue, not a First National.
Hope this helps.