The area it's installed in is famous for sculptures of figures that served the British Empire, generally in combat.

https://en.wikipedia.org/wiki/List_of_public_art_in_St_James...

It's not exactly subtle. A man goose stepping while blinded by a flag is a contrast to the other military figures portrayed in victorious poses.

> If the man holding the flag had been wearing a thawb instead of a suit, or if the statue had been of a woman, I think the establishment's response would be quite different.

That's argumentum ad speculum[0]. You can speculate what the response would be if the statue was different in a way you imagine, but the thing is, it's not.

[0]: https://www.logicallyfallacious.com/logicalfallacies/Hypothe...