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If it's a simple flag in the executable file header, what stops a cheat program setting the same flag and getting into the sandbox?

Or a cheat program combining itself with the game executable, and setting the flag so other processes can't interrogate whether it contains a cheat.

You don't "get into the sandbox", if a cheat program opted in, they would be launched into a separate instance that's distinct from the game.

And you would sign your files, which get verified by the integrity platform and allow you to authenticate with the servers securely.

Sounds very similar to total platform lockdown

It is similar except it's only a total lockdown of the sandbox.