"You know, it's funny; when you look at someone through rose-colored glasses, all the red flags just look like flags." - Wanda the Owl, BoJack Horseman
Or from an even earlier poster / TV show -- "I Want To Believe"
But red just looks like red in those glasses
Yes, just as white or many non-red flags would. The idea is that other flags are indiscernible from red flags because everything is rose-tinted, and more amusingly the playful combining of two common English expressions.
I know what the expression means mr. captain obvious.