hmm,, I may be meet the problem,,
and I understand what you say,
because some of grove do not cause distortion, but when check it,
it is wrong mesh boundary. so how effect is rely on how the poligon group assigend.
or how change the figure shape, and auto- follow the shape.
as you say first pic is auto-fit with template shut. it caused not big distortion,
but when I pose hand, there were big poke , so I felt strange,.
then,, I understand about first pic,
” the right collar has polygons assigned to it from all over the mesh”
then second pic is which I replaced the obj of auto-fited figure but with no template,
I saved the reshaped obj for fit genesis shape more , so I use the obj and replace obj only by transfer utility .
so the rig and poligon assinments must be same as when I auto-fit but with non template.
Now I seems the second pic figure poligon assinged correctly from the picture..
.
anyway,, I relieve , because you say , assign group correctry again, I can deslove the problem
when I found same problem.(but it is not auto-fit at-all ^^;)
===============================
now I test it as two auto-fitted figure .
a) jacket auto fit to genesis with “shirt” type
b) jacket auto fit to genesis with “no” type
the product is jaggler jacket for v4
there can not find any difference usually with zero pose, zero morph.
but when check node and mesh bounary,
the a) auto-fitted clothing mesh boundary toward all body.
next I bend the r cloller,, some degree.
the a) figure make so big poke through,,,,not only r sholder , l sholder too. aatemp1 img
but b) figure can follow the pose. aatemp2 img
(edited so,, in this case,
the problem is happen with shirt template . otherwise no type,(default template) auto-fit do not make poke through)

Click thumbnail to see full-size image