To add, the Bonnie Blue Flag was used as a Battleflag at least at one big battle...

Stones River

Reports of Col. Robert W. Harper, First Arkansas Mounted Rifies, commanding regiment and Third Brigade. JANUARY 10, 1863.

..."I cannot close without paying a tribute to the field officers and officers of the line, and the gallant spirits who compose their commands. Each seemed to vie with the other in deeds of daring, and where all exerted themselves so strenuously it is impossible to discriminate. The color- bearers along the whole line more than once elicited my admiration by the steadiness with which the Bonnie Blue Flag was constantly borne in the front line."...

And mentioned in another report...

Reports of Lieut. Cot. Milton A. Haynes, C. S. Artillery. HDQRS. ARTY. FOURTH DIST., DEPT. OF EAST TENN., Jonesborough, September 12, 1863.

"With a shout and a hurrah for the Bonnie Blue Flag, the North Carolina boys made the charge, and the enemy fled before them, as you and the general well know."