Why does it do that? Thank you. I lowered thickness on collision factor.
https://www.dropbox.com/scl/fi/2kvru3za9pp84ugsaveyh/TEST5.blend?rlkey=qch8f2hanhi8x0z6ktg4aml0v&st=i8kr9kd8&dl=0
Most likely it's the collision distance, this is the distance from the collision object (character) when the cloth will form it's shape over the object.
In this case you want the cloth to drape over the character more naturally, so you'll need to lower the collision distance.
You may need to adjust the Impulse Clamping and/or adjust the Damping settings if the low Collision Distance causes the cloth to behave erratically.
Yes, Adrian is right, it is the Collision Distance, but that is also influenced by the fact tht you forgot to Apply the Scale. (Be aware, that Applying the Scale now, will at least mess up your Solidify Distance.)
Apart from some other tweaking, you might want to try and enable Dynamic Mesh:
