On one test with this new version I also once got a message similar to the "cloth not found" (I forget the exact wording, so I can't be sure it was the same message smaker1 saw) when I tried to click the cloth button, but after exiting and rerunning it without modifying subdivision or changes to the scene it worked on the second try.

I retried my test with the tilted T-pose, and this time it is working as expected, so either I did something wrong on the first test or the various differences in settings I used and/or the version eliminated it.

Her toes are sticking through for some reason (but only the feet/toes), I'll have to learn a bit more about what controls or affects pokethrough. I tried messing with subdivision a few times but that didn't seem to resolve it.