I think the resolution of "it has invalid flags" flag is not only confusing but also harmful to the site. It doesn't reward doing the right thing and doesn't give the proper feedback so people using flags have harder time learning how to use flags. Everyone can see the list of their flags. The resolution is displayed so that people can learn. The numbers of helpful, disputed and rejected flags is displayed to further guide people and reward them (most people would rather see their helpful count go up).
Despite all that, the "it has invalid flags" flag is handled in the opposite way to what it should be. It is handled together with all other flags even though its meaning is the opposite of other flags.
Therefore I would like to propose that "it has invalid flags" flags should be marked in the opposite way to other flags when a moderator makes a decision:
- when other flags are deemed helpful, "it has invalid flags" flags should be marked as disputed.
- when other flags are deemed disputed/rejected, "it has invalid flags" flags should be marked as helpful.
That will be much less confusing and will give better feedback to users.
This issue has been brought up a number of times before. I chose to post a new question as I would like to propose a solution to the problem, not just discuss it or seek clarification.