The first amendment trumps the flag code. Nobody follows it because they have a God given right to do whatever they want the flag. The flag code states you’re not supposed to wear it on clothing. But I still do. I have several shirts with the American flag on them and there’s nothing anyone can do about it.
military people / their families follow it...and lots of other people. But you're right, loads of people do not...wearing it, hanging it from their truck, ect...