From Glitch City Laboratories
The capture flag is a specific flag for a value of 255 within the first generation of Pokémon games, which when checked, will activate a valid Pokémon as 'own' in the Pokédex. A value of 255 is assigned to the relevant Pokémon's Pokédex entry, either by capturing a Pokémon by successfully using a Pokéball on it in battle, or by obtaining it as a Gift Pokémon.
In the case of a glitch Pokémon, it may either use an invalid address for its corresponding capture flag, or share its capture flag address with a valid Pokémon; depending on its family. MISSINGNO.; family #0 is perhaps the most well known example of a glitch Pokémon with an invalid capture flag, as when it is captured it will set the player's sixth item quantity to 255.
See also
- Encounter flag