It looks like the cloth have a mesh smoothing modifier applied, and the whole genesis figure defined as 'collision item'
Maybe this product can help you:
https://zonegfx.com/cf-jiggily-dynamics/
Its a series of body parts sustitutives of the original body. If you fit them to the figure, then in the cloth item select this figure instead of the genesis whole body, this could help.
Other option is try not to bend arms too close to the body
Hope it helps you