The Moderator Tools Privilege description page jumps perspectives. It reads:
Can I see all flags?
No. If you pick the flag → it needs ♦ moderator attention → other option, your flag will be treated with the highest confidentiality and will only be visible to community moderators and Stack Exchange employees.
In addition, flagged comments and spam/offensive flag counts are not visible to you.
In other words, "Can I see all the flags?" is from the perspective of someone with the moderator tools privilege. The next paragraph begins, "If you pick the flag..." (instead of "If someone picks the flag.") We've now switched to the perspective of the person being moderated. Then the last line, "are not visible to you" switches back to the privilege-holder perspective. Instead, how about the following:
Can I see all flags?
No. If someone picks the flag → it needs ♦ moderator attention → other option, the flag will be treated with the highest confidentiality and will only be visible to community moderators and Stack Exchange employees.
In addition, this privilege does not reveal flagged comments and spam/offensive flag counts.