Valor flags are visible if someone purchases that upgrade, but if you see a unit get more small flags during a battle as a result of battlefield upgrades they don't do anything. The combat effect of battlefields upgrades was removed in MTW/VI v2.01 by LongJohn which is the version that Samurai Wars uses.
If someone makes a weapon or armor upgrade on a unit, you won't see that. These upgrades are not really worth what they cost, but +1 weapon on no-dachi might be almost worthwhile. Cost will be 650, but the unit will just win a bit faster against units it already beats.
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