There must be some step I am missing in clothes making. When I go to the setup room and auto-group I come out and the coat I just made starts coming apart at the seams. I've tried adjusting the grouping of the clothing facets but I always seem to get the tears in the seams. :(

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Look at the joint zones to confirm whats included and excluded in the bend zone.
Check the groups for neck, chest, collar.

Looks like the neck is welded to more than one other actor.  If this is the case, rearrange your groups. Have a look at one of a working figure to find out how groups have to be arranged.

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Is there a good tutorial out there on clothes making which addresses the problem of tears in clothing?  :(

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Sure, here you go!

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