Update
Using LiveSync 2 is easier than LiveSync 1, because it is now available as an editor mode instead of a separate editor window. This allows you to seamlessly work on a scene without having to switch back and forth to the previous LiveSync Editor.
You can press Update in CLO/MD LiveSync Mode, then assets from CLO or Marvelous Designer will be created as an UsdStageActor in the viewport. We are utilizing UsdStageActor and the USD importer in Unreal Engine because we believe that USD format is the future for all 3D applications. Significant improvements have been made in CLO and Marvelous Designer for exporting assets to USD files.
From this moment, you can press the Update button whenever you want to bring updated assets from CLO or Marvelous Designer into Unreal Engine, and the UsdStageActor placed in the viewport will be updated accordingly.
Save
When you are done selecting save options and ready to save the assets to Unreal Engine assets, simply click on the Save button. Then a pop-up window for selecting the assets will show up.
In the designated directory, the assets will be saved under a parent folder with its name mathcing a project file in CLO or Marvelous Designer. If a project file in CLO or Marvelous has never been saved, the parent folder in Unreal Engine will become 'Untitled'.
When you are done with the Update process, you can simply delete the UsdStageActor in the viewport.
AsCloth
As the Chaos Cloth workflow is designed to be used with MetaHumans, we recommend you to start with one of 18 available MetaHuman body types in the Library of CLO and Marvelous Designer. They can be located by navigating to Avatar > Avatar > MetaHuman.
Please check out a tutorial video about the Chaos Cloth workflow for Marvelous Designer (and this is identical for CLO).