I didn't see any LoS change on retail (unless you have a patchnote ... ?). We went on retail and it is currently working exactly as it does on Nostalrius Begins.
However even if we don't take it as a proof, on every video we watched, no one is playing with the flag LoS and sometimes we see casts like chain lightning going through it. Everything tends to show that there is no LoS for the flag.
So unless you can find a video showing someone unable to cast something because someone is not in LoS, we will not change that behavior. Proof has to be given before changing something, not the other way around
