As I reread you're post, I don't think you're replicating my settings. I do not have Cast Shadows on for the Skullcap, so that is not where the shadowing is coming from. It's the only thing I never put Cast Shadows on, and the reason is basic. I don't want shadowing along the edge of the cap where it is not absolutely 100% snug with the head.

Here's an image with the settings I've actually been using.

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Hardware: AMD Ryzen 9 3900X/MSI MAG570 Tomahawk X570/Zotac Geforce GTX 1650 Super 4GB/32GB OLOy RAM

Software: Windows 10 Professional/Poser Pro 11/Photoshop/Postworkshop 3