Here's my method for tightening dynamic clothes.

Don't parent the dress to the figure.

At frame 1, scale the figure down in the X and Z axes - usually from 90 - 75% depending on the degree of tightness required.

Ensure the figure is back to 100% at the final simulation frame.

Scale the dress down the same amount - or whatever's required to make it fit without poke-through - but make sure it stays at that scale throughout.

When you simulate, the figure will 'grow' into the dress and stretch it.

I very rarely have to use constrained vertices with this method. I use it on most cloth simulations, but that may just be down to a personal preference for tight clothing. :)