Yes,Progress cannot be satisfied as when both processes set their flag's to true...both cannot enter the CS
Progress: Some process must execute in CS then there is said to be Progress
or
The process which has to be entered into CS must be taken by the process which are executing in Entering section not by
processes which are executing in the remainder section(EXIT SECTION) in FINITE TIME
So when the two processes set there flags to true both want to enter CS so decision must be taken by the two processes
but as there flags are true decision is not taken in FINITE TIME, hence Progress is not satisfied.