Glad you sorted it out.
In the cloth panel you also have other options for the phat asset.
Just pointing that out so you know in the future.
It can be (and often has to) made to use an entirely different physics asset than the character.
What I think is happening is that because of CC3 you have never had to paint and set weights manually.
If you follow that. The distance that cloth is allowed to move is what you directly paint into the mesh.
The value can only be altered if you re-import from vertex colors (as I explained in the video I initially shared).
Most if not all times, importers and pre-sets use crazy insane distances for no reason.
In the case of cc3, apparently, there’s also a tether limit being somehow added in.
I would suggest trying to set both values to 0, or both to 1.
Either way, given what happens with your sample. A bug report on tether not turning off is probably in order.
A tether limit of 0 should disable the behavior in engine…
Tether stiffness and the whole behavior should just not be active if the limit value is 0.
And this isn’t according to me. It’s according to the nvcloth docs I shared before…