If you encounter that the Flag is a frame ahead, perhaps use a Point Cache or the Cloth Cache. But do not leave the forces on after caching.
There are typical problems when the Flag has a lower resolution than the "label," as the edge does not bend, which might show when it overlaps/intersects.
If you have a wild flag animation with significant differences in the mesh, go with a texture/material-based solution. CV4_2024_drs_23_CAfl_01.c4d
The hand on the right looks quite different, stretched.
As usual, images have very little information. Could you attach an example file with the displacement texture, perhaps with a render from ZBrush, so I can understand what you see and perhaps place some notes on the render that are important to you? I assume we all have our ideas of how things have to be.
So far, I think it is safe not to use a SDS-object and RS Displacement (RS Tag) for the same object. Not that you mentioned that, but just in case.
As mentioned, here is a file based on your panel/profile.
The file "01 " produces the smallest displacement square, and even in 32bit/channel/float, it is relatively small.
Please note that the depth information is based on a Gradient set to Linear and projected from the side, with no baking!
The "11" file contains a Redshift 3D setup with the displacement map.
In many cases, the fastest method, while it works with all geometry, must not be only Polygons. That is one of the many advantages.
However, I encourage you to explore the creation of such maps in Photoshop; it has so much potential.