Does picard markduplicate toggle PCR duplicate samflag
Yes, if MarkDuplicates encounters a pair that's marked as a duplicate that it considers (for whatever reason) to not be a duplicate then it will unset the duplicate mark. You can test this yourself by making a small BAM file either with or without duplicate entries but some marked regardless. In the case of actual duplicates, the duplicate flag will be maintained. In the case where there are no actual duplicates then the flag will be removed. At least that's the case in version 2.14.