Looks like someone's not happy with the Genesis' Autofit tool. 

 ;-)

Of course if you convert from a skinny man to a buxom beauty or a bodybuilder, loose fitting cloth will look skin tight because mainly the "bumps" get pushed into the clothing.

The solution would be to first create a proxy morph that has the same volume as the original morph, but has a smoother shape. 

Automated cloth fitting is always a compromise.

If you want 100% perfect fitting clothes, you need to convert manually in ZBrush or another modeller.