The measure permits only certain flags to be flown over US embassies, including the US flag, US Foreign Service flag, POW/MIA flag, Hostage and Wrongful Detainee flag, flag of a state, “insular area” or DC, Indian tribal government flag, the official branded flag of a US agency, and the sovereign flag of another nation.
There are plenty of countries where the US has an embassy that are far more progressive and accepting than the US.