Japanese sword flag

I'm just going to go out on a limb here... Why, pray tell, is there a scabbard? If the flag is attached by knotted string, wouldn't the scabbard be superfluous? Or did Japanese NCO's routinely carry ground down swords and little flags that they could conveniently tie to said swords immediately prior to battle? Just seems like an odd item to survive in that immaculate of condition... The flag that is.

So do you think the flag in the auction photo is a later addition?

That one on Simpson's just has my spidey sense tingling... The one pictured on the forum shows tattering and discoloration consistent with being rolled and stuffed in the metal scabbard for years. The flag on Simpson's is immaculate, while the scabbard and other exposed portions look like something that Commandant dug up.