I am trying to create clothing for a body mesh of mine. I want the clothing piece to be able to animate along with the skeleton without experiencing clipping with the body mesh. What is the best way to go about this? I've tried applying automatic weight paint which was a mess trying to fix (so much clipping). I also tried data transfer on vertex groups which gave me no success. Any ideas? Thanks.
One popular way is to hide body mesh parts under cloth using mask modifier. Other is to use Lattice modifier to deform cloth. Here is a tutorial on this topic
Select your clothing and add an armature modifier to it, parenting it to the same armature as your character.
Select your body mesh, then select your cloth mesh and go into weight paint mode. In Weight paint mode look for transfer weights in the menu, click it and in the options set the Source to By Name.
Your cloth should now move according to the movement of your Rig.
Duplicate your body_object Ctrl-C & Ctrl-V.
Be sure to select the new version, 'cuz it doesn't do it for you.
Scale it up by a tiny amount.
Go into Edit Mode. Tap A so everything is deselected.
Face-select. Tap C to circle-select
Left-click to select arms, legs, head. Right-click to finish.
Rotate view with middle mouse if needed.
Hold Shift and left-click to deselect any you don't need.
You only want the approximate shape of a shirt.
Delete, so you only have a torso left.
Go back to Object Mode. Add Modifier > Shrinkwrap.
Target > the name of your original body_object > offset: 0.03
Repeat process for other articles of clothing: pants, shoes, gloves, hat, etc...
Edit with normal methods: vertex at a time, or proportional editing.
Add the Armature deformation modifier to the new clothing.
You can delete vertices that are hidden by clothes on the original body,
keeping only the head and hands, if you so choose.