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Updates incorporating new flags (3,7)

Ross

I believe the answer is:

red ensigns

'flags' is the definition.

'updates incorporating new' is the wordplay.
'updates' becomes 'redesigns'.
'incorporating' is an insertion indicator.
'new' becomes 'n' (common abbreviation eg NT for New Testament).
'redesigns' placed around 'n' is 'RED ENSIGNS'.

I've seen this clue in The Everyman puzzle in The Observer.
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