I understand clipping exist but in sets too? Read on

[Canadane]

I mean right now with technology there's nothing you can do to prevent clipping. Especially in online games atm. What workaround would you prefer they use?

Technologically it's feasible. Be it cloth physics that move for solid objects or go back to 1.0 style gear where everything was properly fitted instead of scaled.
They won't do it because of the costs though.