Filmmakers and television shows should obtain prior permission from the authorities to show/use the national flag in their film/shows. They should also justify the necessity to use the flag in a particular scene. Government prohibits unnecessary use of the national flag in films and shows.
Even after obtaining the permission the film/show should use the flag in proper dimensions confirming to the flag code.
Now coming to the incident in BiggBoss show, Actor Sivakarthikeyan who came in as a guest to promote his upcoming film Amaran, which is based on the real life incident of Major Mukund handed over ROUND BADGES of the flag which do not comply with the flag code. It should not be displayed anywhere as per the directives of the government. That is why it must be blurred.
I do not see any disrespect or wrong in the blurring of the badge. In fact it is actually respect to the flag imo.