Can't get cloth system work with custom character

I am trying to make a cape for my character and there are plenty of videos about it. It sounds weird but when I follow the instructions on the unreal engine mannequine as the tutorials show it is fine and working, but when I follow the instructions on my own character (which I made in blender) the cape doesn’t collide with the physical body capsules.

There are many people having trouble with the cloth system yet noone has a solution but blaming the engine version. I want to know what is lacking in my character rig that unreal mannequin has.

Thank you in advance for time.