I recently saw this video where the 3d clothing (particularly visible via the headdress on the character’s head from 0:10 onwards, also visible on the other player’s clothes but less obvious since the camera isn’t focused on them) stretches and moves with the character’s shoulders instead of clipping through like most 3d clothes do.
I was wondering how they did it, and my only theory so far is that maybe they made the clothes a rigged skinned mesh and welded the bones to the character parts? I haven’t tried it yet but posted this here first in case someone has experience with this.