from my point of view neither progress not bounded waiting is satisfied
Progress: If no process is executing in its critical section and some processes wish to enter their critical sections, then only those processes that are not executing in their remainder section can participate in deciding which will enter its critical section next, and this selection cannot be postponed indefinitely.
Bounded waiting: There exists a bound, or limit, on the number of times other processes are allowed to enter their critical sections after a process has made request to enter its critical section and before that request is granted.
so here the supposs p0 and p1 make there flag = true, both of the process wish to enter the critical section but non of them will enter and also bounded waiting is not satified as you can see in the code