Magica Cloth offers very nice 3D physics, and you can see it in action in Christine Choi's new Unity showcase. The artist demonstrates how the colliders work with skirt fabric and trinkets hanging on the avatar's belt.
Choi's X/Twitter has all kinds of fascinating 3D projects, including potion jars and a cool texturing technique. You should pay her a visit, especially if you are a VRChat fan.
Magica Cloth can produce stunning results, like in this fun dress rig. It is good not only for clothes: you can use it to simulate hair, for example: