I have used bit field with a structure like this,
struct
{
unsigned int is_static: 1;
unsigned int is_extern: 1;
unsigned int is_auto: 1
You are given a gun and bullets. Is it okay to shoot your self in foot with it? Of course not, but nobody can stop you from doing this if you want to.
My point is, just like gun and bullets, union and bit fields are tools and they have their purpose, uses and "abuses". So using bitfields in union, as you have written above, is perfectly valid C but a useless piece of code. All the fields inside union share same memory so all the bitfields you mention are essentially same flag as they share same memory.