Hi,
I have been developing some clothing assets for Metahumans and thought I would try the new Panel Cloth approach.
For all assets I merged inside the editor (using the Merge Tool or Merge in Modeling mode) I got the above mentioned error. First I thought I had coincident vertices so I went to Blender and merged by distance but no merging took place. Because there were no coincident vertices. The mesh data the panel cloth looks at “makes up” some non-existing triangles.
In this post I describe a concrete example with a screenshot and show that the supposed triangle with coicident vertices did not even exist. Failed to generate clothing sim mesh due to degenerate triangle - #9 by BreakMaker
Must be a bug / issue which occured when I used the merging tools to merge the meshes and thus some vertices got new vertex positions assigned.