My experience in the UK is that it's only used a symbol of enthusiasm for the music and culture of the American South - Elvis, bluegrass, C&W. As such it's pretty harmless. The commonest place you'll find it is in the windows of shops selling rhinestone boots. I've never seen it used by fascists (the commonest flags they use are the Cross of St George and the Union Jack).

Whereas I can't imagine any circumstances in which somebody could display the US flag without it being propaganda for indiscriminate state violence.

I'll take Dolly Parton fandom over the prats who fetishize "our troops" any day.