I recently installed the Plug in a 2008 Mdl 642-2. This is a Centennial-type enclosed hammer ("hammerless") J frame revolver.
In so doing, I got a good look at the internal lock (IL) mechanism.
I left the flag in place, after grinding off the small stud that actually fits into the hammer and does the locking; I also ground off part of the flag that interfered with clip spring holding the Plug in place. In the hammerless revolvers, the flag does not show outside of the gun.
But leaving the rest of the flag in place fills that spot inside the frame and more importantly leaves its pivot pin in the small hole on the back left side of the frame -- which would otherwise be an open hole.
I read about a lot of people who remove the flag piece to disable the lock. I am suggesting it might be better to simply grind or file off the small locking stud and leave the flag in place, along with the rest of the lock that fits in the hole on the left side of the frame (if you don't want to install the Plug).
For a revolver with a exposed hammer, if the locking stud is ground off, the flag could still be moved to the "locked" (up) position, but it would have no bearing on the function of the revolver. For someone with a grinder, the top of the flag (which signals "locked") could be ground to fit perfectly with the revolver in the up position, and it could be left up - filling the slot alongside the hammer - while having no effect on function.