Reconcile flag doesn't turn off

In the US, the orange flag can also mean there are scheduled transactions for the account.

Exactly as John states. This is also true for XG. The orange flag is an alert. If you hover over it with your mouse, you will see a message that explains the reason for the alert such as "You have bills and scheduled transactions due soon".

If you go to the Cash Flow Centre and then select Set Up Alerts, you will see where you are allowed to set-up or disable alerts. In the "Show All" area you will not likely see any alerts, but if you click on the Setup tab you will see a few of checkboxes that are I think are checked by default, although this may have been an installation option which I don't recall.

In any event, these have nothing to do with reconciliation. When you reconcile your account an "R"is place beside each transaction included in the reconciliation. This "R" stays there and is a very good feature of Quicken since it allows you to see at a glance that status of your accounct vis a vis your bank statement