With a skirt that tight, I don't know what you achieve with a cloth simulation. That would naturally hug the body (conform) without being altered much by outside forces. A simulation is going to be more useful for a looser, more flowing garment. For something tight, you probably want something conforming.

In a simulation, the dynamic part of the cloth should not touch anything with which it is set to collide. The collision offset is the gap of space that the simulation maintains between the cloth and collision objects (figure body parts and chair). When the cloth starts closer to the collision objects than the collision offset, or touches, the cloth tends to get torn up. It can also rip if the friction is too high between the cloth and the collision objects. Stretching out of shape can be due to a combination of the stretch and the density parameters.

I'm amateurish, but to me, for a skirt like that, I'd like to be using a conforming skirt, and then tweaking it with magnets or the fitting room as necessary.