This looks really impressive. Is this using Unreal Engine? From the screenshots I can tell you are using Daz characters. Have you considered switching to Dual Quaternion Skinning? It gives much better deformations around the glutes area and you can actual use the JCMs provided by DAZ.
Thank you, I've been putting a lot of work into it!
The game and its creator kit are actually built on Unity URP, and the characters are based on and fully compatible with DAZ Genesis 9.
Regarding the skinning, I'm currently using bone-driven JCMs (which still need some refinement). While Dual Quaternion Skinning is great, it comes with a heavier computational cost that would drastically reduce the number of characters you can have on screen at once—a common bottleneck for games in this genre.
Understandable. I use DQS in my project, but there is only one character on screen using it :D I haven't tested scenarios with more than 2 DQS characters. Is it really that bad? In Unreal one can easily switch between different skinning methods via the deformer graph. You could even implement add runtime switches which react to the currently applied LOD.
It's not the heavy DQS in itself, but in this context it's an aggravating factor because, with hair strand-based groom already sacrificing the GPU, adding physics-enabled clothing and DQS on top of that makes the performance cost significant. Unfortunately, the blanket is very short in VR, and you always have to make design choices that can't satisfy every aspect. Yes, Unreal is much more convenient from that point of view, but unfortunately, it's not very well suited for VR performance.