Purely speculation...but the description sounds similar to that early war cotton issue...that had 12 stars. The 5th Alabama Battalion had one of those early on as well as the 18th Georgia and some others. Maybe the 21st had one of those. I think those were sent home early in some cases as the cotton flags were not great for field use. Bunting flags made by Richmond replaced these early ones.

Phil... Member Department of Confederate flag speculation.