So, are you saying that clothes are affected by the K4 update? Or the Initialize? I must admit I do forget to update my figures quite often, but we are talking clothes here. I am commenting after simply loading the clothes into the work area, but not conforming to a character,  would that make a difference. Although I have tried the 3TDM on a K4 figure, and most of the Morphes don't do anything. I feel sure they are meant to. When I load any of these into the Morph Manager, it clearly shows them as Morphs, and I've tried transfering them to a stripped copy of the same item, but still no luck. I keep messing around, and see if I can get any joy. My main concern was that I hadn't accidentally switched something off in the main program, which is 2014 by the way.
Cheers Gray