As someone who identifies as pansexual, the distinction i make is that I don’t consider gender when vetting a potential partner, it’s just not a metric that is part of that decision.
Aside from that, your description here is spot on from what I understand at least. Of course gender and sexuality is a social construct so other people may feel differently
I switch between them, but I concur, I also prefer the bi flag and I usually just identify as bi for simplicity and not having to explain the difference lol