Yes, that product shows the mesh breaking. Just do a bit of bending of the legs and you will see the problem.

I have mixed feelings about the autofitting - on one hand it makes it very easy to create clothing, on the other hand you hand over control of the fitting to an automated script with little or no control (as far as I know). Each cloth behaves differently when bent so the autofit may have an undesired result. But I guess we should use dynamic clothing if we want that kind of control over draping.