adobe illustrator - Distorted shapes/lines when rescaling - tried previous answers

I am curious as to why when I scale things the general shape changes. The flag in the middle is what I originally started with, and either side is the distorted result of rescaling it.

I have read previous answers and tried: unchecking align to pixel grid upon start-up of new document and then with the flag shape selected; checking 'scale strokes and effects'.

Any ideas? Here is another example of where this has happened, both lines and rectangle shapes have changed (harder to see):

And here is what is checked/unchecked:

I am completely lost... been searching for an answer but nothing. Thank you!