I had the same issue.. seems like if you start a new game after 2.1 update, it should work.
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Show posts MenuQuote from: Indo95 on September 25, 2017, 03:26:24 AMIndeed. It makes the game more realistic just like bannerlord. Plus the banners suppose to boost morale and battle spirit for the troops.
it's not really a deal breaker but it was a nice effect. it just made the banners that some of the faction infantry held in battle flow in the air and not be so static. it worked in the donators edition.