How to setup Smooth cloth physics transitions during lod switching or when Cloth sim state changes between Disable - Enable?
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LOD Switching is a tricky one, because it really depends on the energy within the cloth at the time, on the topology differences between the two LODs, and on how the simulation settings affect each LODs.
The transfer of positions and velocities is done through barycentric coordinates of one LOD vertices to the other LOD’s faces, so you want the two LOD sim meshes to match as best as you can and make sure the maps (MaxDistance being the most important one) matches as well as possible.
If you are using the legacy Clothing Data, then the simulation parameters have to be the same, which is often a problem since a low poly sim mesh will be a lot stiffer and prone to release more energy than a high poly sim mesh with the same iterations and substeps settings. You could experiment with the Skeletal Mesh Component Clothing Simulation Interactor in Blueprint to reduce the number of iterations as the LOD goes low resolution. (Note that the new panel cloth Cloth Asset has unique settings for each LODs to help with this aspect.)
With regards to enabling/disabling the simulation, I would suggest you use SuspendClothingSimulation and ResumeClothingSimulation instead, and a gradual change of the ClothBlendWeight over time to ease on the transition.
You can also force a reset using ForceClothNextUpdateTeleportAndReset() by blueprint on the SkeletalMeshComponent owning the Clothing Data.
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