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Personally, I wish Sega would have learned from tri-Ace and implemented what they did for Phantasy Star Nova (the offline spinoff to Phantasy Star Online 2) in terms of both cloth and hair physics.
A lot of this was documented in the March 2021 updates for Phantasy Star Online 2 on the Japanese side (the fabled Graphics Engine Update that Global players were very excited for and never got). This update was meant to bridge Phantasy Star Online 2 with New Genesis by introducing the N-Spec cosmetics (the first five Oracle Renewal Collection AC Scratches, early-access to the New Genesis character creator for those who had the cosmetics, and seeing the intended way the new cosmetics are going to look going forward).
This update broke so many things for the old game (Sega's old hacky graphical designs, their old way of making materials appear, and especially breaking PlayStation 4 performance from what used to be a buttery-smooth 60 FPS to a barely playable 4-5 FPS with numerous audio problems and graphical problems.
To add on top of all this, numerous issues were reported by players of the first Closed Beta for New Genesis (players in this beta had access to their cosmetics, equipment, and most of their account data from Phantasy Star Online 2 for use in New Genesis to test functionality like moving between the games, testing balancing, and seeing how things looked in the new graphics) that were never addressed and to this day are still unresolved. Sega ended up making some very quick band-aid fixes for how things looked in the new Graphics Engine to get performance working nicely - but it's absolutely no secret that Phantasy Star Online 2 is left in a far worse visual state because Sega created a new foundation for the graphics but didn't go back to address their older spaghetti code to make sure things looked as they did or nicer in the new graphics engine.
oh yeah hair doesnt flow anymore on NSG, they even cut short on physics, Ironically the older hairstyles still have them, my Lisa hair flows a lot while dashing but all the new hair is like in permanent time stop, it looks so ass.
and that was not bad enough, they completly ♥♥♥♥ up base PSO2 on the procress, as @VanillaLucia tell.
As for OP, haven't seen it at all, on clothing or hair, outside of the updrafters maybe affecting hair.