Need help with Skeletal Mesh Deformation regarding joints, armor shrinking, and deformation graphs not supporting physics or morph targets..

Working on game, characters have procedural physics based animations, characters, clothing, and armor get weird deformations around wrists and shoulders. Want to preserve mesh volume but that doesn’t translate from Blender FBX Export to Unreal Engine 5. Found tutorial teaching about Deformation Graph and it broke the character because it doesn’t like morph targets and cloth physics or seemingly any physics. How can I fix this so the two are compatible?
I’m supposed to fix the clipping and the armor looking weird but I don’t think it’ll ever get to where we want it until we get the volume deformation issues resolved.

This is the video I followed and the solution he proposed. It also caused a separate character to have their fingers and other parts stretch and turn into an eldritch abomination. That one had no physics applied, I have no idea what happened there.