The striped and lozenge styles have equal status, and offices or users are free to choose between them.
[1] The variants defaced with the arms are unofficial, and the use of the symbols by civilians is strictly speaking illegal, but is tolerated.
They are believed to be representative of the lakes and rivers of Bavaria or perhaps the sky, as in the Bavarian anthem, which says "die Farben Seines Himmels, Weiß und Blau" – "the colors of His sky/heaven, white and blue".
That is, the description is made from the point of view of a shield-bearer who is behind the coat of arms, and in this case, behind the flag.
Thus, the right upper corner, reserved for a truncated white lozenge, is on the top left (adjacent to the flagpole) for the viewer.