I am having the same issue.
I have watch the youtube videos I could find on the subject. The issue is that the skeletal mesh of the character is imported separately from the skeletal mesh clothing asset. The clothing item, which in my case is a dress, is bound to the hip bone in Maya, and then imported into unreal as a stand alone skeletal mesh asset to be attached to my character via the construction script in the character blueprint. Initially the skeletal clothing item has its own physics asset, but I set it to the physics asset of my character because I hope to simulate collision events between the chacter legs when running and the dress for example.
Collision is set up properly for character. Inside of the clothing asset for the cloth physics, under ‘asset details’ I have adjusted the collision thickness. When previewing with an animation asset, the cloth seems to move with the character. However when playing the game in editor, the characters legs are clipping through the dress.
I have tried enabling ‘collide with environment’ and ‘force update simulation’ in the details of clothing item actor component inside the character blueprint. Perhaps I’m missing a setting? Something I ovelooked? Any help is appreciated.