Cryptic crossword clue
Flaw in insignia, which should not be part of a straitjacket 8

The most common and most likely answer to this crossword clue is the 8 letter word ARMHOLES

I've seen this crossword clue in The Guardian
A
R
M
H
O
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E
S

Buddy explains!

The straight part
We know that "which should not be part of a straitjacket" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case which should not be part of a straitjacket = armholes.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does ARMHOLES mean?

ARMHOLES noun
  1. A human armpit.
  2. Similar structures in other animals.
  3. A hole for an arm in a piece of clothing.

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