I have noticed that the Flatten tool does not exactly respect the selected flatten mode.
The first mode (remove terrain higher than the starting plane) will raise terrain that is slightly below the starting plane. (It may rarely also disregard the plane altogether and start eroding terrain lower than the flatten plane as if I was using the erode tool)
The second mode (raise terrain lower than the starting plane to be level with the starting plane) will erode terrain slightly higher than the starting plane.
Expected behavior
The first flatten mode (erode higher terrain to be level with starting plane) should not affect any terrain that is any amount lower than the starting plane.
The second flatten mode (raise lower terrain to be level with the starting plane) should not affect any terrain that is any amount higher than the starting plane.