The mod is made for vanilla body. Should work with UNP body. All meshes redone in Version 1.1, weight sliders reviewed, there should be no more clipping now.
The rigging on torso1 seems to be completely hosed. It's what is causing the clipping issues. The polys look like shattered glass in game. Also, there shouldn't be any body parts under the top half of the clothing. This would prevent any further clipping after you get the rigging fixed. Hope this helps.
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edit: tried it without CBBE to similar results