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You can use a variety of modelling/rigging software. Many use blender.
Texturing is typically done with a program like Substance Painter.
Animation controllers, shaders, and a few other avatar settings are done in Unity.
Finally, uploading to VRChat is also done in Unity.
You can also accomplish a lot using a base model downloaded from sites like gumroad. Some people use vroid to make the base.
In any case, you can make quite a few good looking customizations and upload with Unity alone. It's very easy once you have the workflow down.
This gives a good overview
https://docs.vrchat.com/docs/creating-your-first-avatar
Make sure to use the VRChat Creator Companion. It makes setting up Unity and downloading up to date SDKs very easy.