It’s not because of mods. As I (and several others) explained in the thread, it was a bug related to character height, and the bug was present regardless of mods. (Some people, myself included, suggested using CharEditLite as a workaround to this bug.)
It may be that one of the more recent patches has addressed this cloth physics issue on characters with non-standard height. Or it may be random. As far as I have witnessed it, the bug was never 100 % present even with very tall or very short characters.
Yep. Derketo dress and Lemurian Royal loincloth are the ones that originally got my attention to this particular bug when I was decorating and populating my base near the Pagoda. The bug is especially conspicuous on dancers, who move around a lot. Guardsmen standing at attention wouldn’t be as bothersome to watch, but I tend to dress my guardsmen in actual armor.
I can’t recall if other clothes are as prone to this bug as the aforementioned two. In any case, I’d be happy to hear it’s fixed.