The wrinkling in the second pic is more to do with your mesh being stretched by the morph, while smoothing will help you could also try adding SubD to it in DS.
The smoothing helps, but when I try to send the smoothed clothing to hexagon so I can then make a form specific to a morph for that clothing the figure that gets sent to hexagon isn’t smoothed.
Does the bake smoothed morphs lock the mesh in its current configuration so it doesn’t have to apply smoothing all the time?