Keyboard layout applet on the panel does not change the icon when a different layout is selected. For example, US layout is my default, but when I select an alternative layout, the icon still shows US.
This issue has been deemed by the developers to be an issue related to Budgie, our primary desktop environment. As Budgie is a distro-agnostic project, developed by Solus but leveraged by other operating systems and projects, we maintain a dedicated issue tracker for it. This issue tracker can be found at https://github.com/solus-project/budgie-desktop
We encourage you to search for your issue there and if your issue is not found, please create it. Bugs filed, tracked, and resolved there ensure the wider Budgie community can engage in a solution to your issue. Do note that we do not consider your issue "invalid" by virtue of being closed here, but rather are trying to maintain the distro-agnostic nature of Budgie as well as maintaining focus of Solus-specific issues on this tracker.
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