Oh good to know, that is a change with the more recent version then looks like.
Had noticed this happen at an older site that must be using a previous version of discourse, flagged posts are still visible to the public not just logged-in users.
That other topic that was linked has been closed, could continue talk from there if anyone wants to talk more about this here is quote of original post:
Continuing the discussion from The persistence of posts hidden by flags are a bane to our community:
This isn’t always necessarily true, overall I would say respecting freedom of speech is much more important to most people than for flagged posts to be censored. However it can be important for there to be active leadership in talks and not let things descend into chaos, which usually happens when there is no leadership.
Lastly would say for this flag system could help if there is a setting (if there isn’t already) for posts to be fully removed just initially/temporarily if they are flagged past a certain threshold, until they can be reviewed by mods/admins who can then decide if anything needs to be edited/censored.