Games are done using MD all the time. The Witcher 3 is a famous example: all clothing on it are done using MD. It’s the easiest way to make your clothing look convincing, since it wraps it around the characters’ bodies and creates the folds using physics simulation based on the stitching you setup.
Modeling clothing by hand (specially detailed and realistic clothing) takes a lot longer and the artists needs to be very experienced and talented to make the folds look right (it’s something real-life painters and sculptors take years to master).
Also, since MD’s workflow is based on real clothing design you can easily get people with real clothing design experience to work with it. Again bringing up the Witcher 3, they had actual clothing designers make the game’s clothing.