I haven’t gotten this to work fully yet (as of Thursday March 21 2024, 8:45am) but here is what is working so far:

1. Make your clothing item in Marvelous Designer:
   1. Make an Avatar in Marvelous Designer that matches your MetaHuman body type
      
   2. Design a garment and add it to your Avatar, and simulate (as normal) to test it
      
   3. Make sure you make different fabrics, and set their physical properties (Unreal will use them in its simulation)
      
2. When you’re happy with the garment, export a USD from Marvelous Designer.
   • Go FILE > EXPORT > USD
     
   • Save the file in a new folder:
     
   • In the popup that appears,  disable the “Select All Avatars” checkbox
     
   • Make sure to select CM as the scale
     
     
   • Click OK
   • It might take a few minutes to export
     
     
3. Create a new Unreal project with Unreal 5.4.0
   1. Open the EPIC LAUNCHER, and install Unreal 5.4.0 (Preview 1)
   2. Create a new Unreal project, with the FILM AND TV template
      
4. Add your MetaHuman:
   1. Go to the built-in Quixel Bridge in Unreal
   2. Download the MetaHuman that your garment uses
   3. ADD it to your project
   4. Click to enable any plugins it tells you do, and restart Unreal when needed
   5. Drag your MetaHuman to your level, and zero-out the location and rotation
      
5. Enable the Chaos Cloth plugins:
   1. Go to EDIT > PLUGINS.
   2. Search for “cloth”, and enable the following plugins then restart:
      Chaos Cloth
      Chaos Cloth Asset
      Chaos Cloth Asset Editor
      Chaos Cloth Editor
      Chaos Cloth Generator
      
      
      
6. Create your “Cloth Asset” file:
   1. Once Unreal restarts, make a new folder in the content browser called “test“, and open it
   2. Right-click in the new folder, and go PHYSICS>CLOTH ASSET
      
      
   3. Name the new ‘Cloth Asset‘ file as “TestGarment01“
   4. Press CTRL-SHIFT-S to save your project and the new ‘Cloth Asset’ file.
   5. Double click the ‘Cloth Asset‘ file
      
      
   6. Zoom in on the DATAFLOW graph  so you can see the first nodes, and click the USDImport node.
      
      
   7. On the right side, click the “…” icon to browse for USD file.
      
      
   8. When it opens, you’ll get errors saying there’s no LOD 0. I’m not sure how to solve that right now. I’ve posted on the official Unreal forum here.
      
      
   9. You can try to set the Skeleton and the Physics asset, like this, but it doesn’t seem to do anything:
      
      
   10. You can also try clicking the TRANSFER SKIN WEIGHTS node and setting details, but it doesn’t work either:
       
       
       
       
7. For now, the bottom line is that it seems to import the USD file okay, but the viewports stay blank – and it clearly can’t “see” the garment:
   
   
8. Oddly, the garment IS imported. If you go into the Content Browser, you’ll see that a full mesh – with proper materials added – has been imported. So at least it seems that USD is the fastest current way to import properly textured/materialed Marvelous Designer garments into Unreal (with automatic texture/material setup).