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Understand that items with "ghost flags" actually *are* flagged items (more accurately, they have implied flags). Since context view only shows actions, you won't see a flagged project. However, you will see all of its actions that have inherited the flagged state.

If you don't want items with inherited flags to appear in you context view perspective, you'll have to explicitly flag the items you want to see rather than flagging the entire project.

-Dennis