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Ah okay.
I am back from work so I did some testing. With game time it actually renders fine, but all the physics act very very... dead. I think this kills the velocity built in or something. I upped the animation speed and lowered the world game speed. It seems to sort of fix the issue. Anyone...
So baseline your ''fix'' was to slow down world speed and timeline but game time ? I'll try that because what I have is not only the clothes, it's everything including the body simulation.
Did you ever find out how to completely fix it? I have a scene where the characters walks forward, it's wild how awful it looks. It's also all using timeline.