Have they tried to create a Type 2 or 3 flag? Creating a Type 1 flag shouldn't prevent them from also creating a higher level flag on the same user. See below from theymos:
I just tried it using the
test account created by theymos and it is working.
I created a flag type 1 then created a flag type 3 with no problems.
But what to do if you add a link to the wrong topic when creating the flag? How to edit the link knowing that you can't create a new flag.