This is the answer that was flagged: Passing data to a bootstrap modal
Is this because of another user flagging this as spam, and the tool for community moderator doesn't allow for flexibility in declining flags?
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Yep, that's exactly what happened. There were two "not an answer" flags and one "spam" flag.
At the time, moderators could only mark all the flags on a post as helpful or mark them all as declined.
Normally a moderator would probably dismiss the lot as helpful, but spam flags have more lasting penalties than a normal flag, so they show up in angry red letters in the flag queue... and are typically dealt with first.
The spam/offensive flag queue doesn't show any other flags the post has, so it's possible/likely that the moderator didn't see that the post had other flags at all. In the process of declining the spam flag, the other flags were declined too.