Since 2025.1.2, build 1585 cloth components are breaking whenever the avatar gets reloaded.
For example, when you calibrate full body, turn locomotion animations off/on.
If you switch avatar to another and then back it breaks too but if you wait a couple minutes and then switch back it doesnt break/works again.
When it breaks, physics dont work anymore and/or the whole mesh size changes or disappears completely. The issue is visible for you and other players.
If you rejoin a world, your cloth component only breaks for other players but not for yourself. But if you leave the world and wait a couple minutes before joining the same instance again it's not broken for others.
I know not many use cloth component but it's very annoying for me because it messes up my skirt.
Edit:
this only seems to happen if the mesh with the cloth component has blendshapes