If you don't like the built-in clothing damage effect, then you should just go ahead and make your own clothing texture. You can easily apply any sort of pattern you'd like.
Here's how you do it.
STEP 1: FIND THE CLOTHING OVERLAY SECTION
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A. Select the clothes you want to modify.
B. Apply any colors or settings you want now - it's easier to do this now.
C. Select Clothes Overlays section and find the section on the right for the clothes you want to modify.
D. Choose "Dump original texture."
STEP 2: EDIT THE CLOTHING TEXTURE YOURSELF
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A. Open the texture in whatever graphics program you use. If you don't have anything, get paint.net, it's free.
B. If you don't know how to use a graphics editor, don't ask here. Don't ask here.
C. Do whatever you want to to the texture and save it.
STEP 3: LOAD THE NEW TEXTURE
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A. Choose "Load new overlay texture" and select the file you just saved.
B. If you're replacing the texture instead of just applying a decal, be sure to check "Hide base texture."
C. Notice that some clothing will hide parts of the body to prevent (for example) breasts clipping through.
There is no way to prevent this, if you want to expose some part of the body with a custom texture you must choose clothing that does not hide that part of the body. Why do I have a different shirt in pictures 1 and 3? Because I forgot that the big shirt clothing will hide the breasts of your character, and you'll see right through the body.
CONGRATULATIONS
Clothing overlays are a perfect and easy way to remove parts of clothing - create damage effects, shorten skirts, hide accessories.
Applying decals can get tricky because of the way that the body (especially breasts) can deform the texture, but you'll just have to play around with it.