The following is a workflow solution which may help users who are trying to utilize multiple materials on a particular Chaos cloth instance. We will demonstrate how to setup inner and outer materials plus a decal using the existing simulation setup for the Echo cape.
https://dev.epicgames.com/community/learning/tutorials/zXJP/unreal-engine-chaos-cloth-multiple-material-decal-workflow
Is the cape mesh a two sided material or does it essentially have thickness? The unwrap with the Inner on the left island and outer on the right, is that used to generate the black on white/white on black UVs?
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