Converted coat has clipping issues/holes

Hi.
1). You must delete every part of the body that is covered by clothing;
2). As you may have noticed, no Maxis item has loose armpit area. The body should be in the different pose both during garment creation in MD and during weight transfer. Since you are converting it, you can try to manually edit the weights in the armpit area following this tutorial;
3). The mesh should be vertex painted by 00FF00. You can vertex paint the bottom part of the coat with 3FFF00 and smooth the transition
4). See the dark shadow around sharp edges? You should remove it by splitting these edge loops;
5). You should use Nearest face interpolated when transferring a uv_1 map, not the default option.