I think the sims4 team have given up on this.
The only thing that I can remember that they fixed was the nerdcon outfits because they did not work properly and sims ended up with no pants. But apart from that I have not seen them doing any effort in fixing broken towel outfits, hats getting stuck on sims, improving how the game selects clothing for situational outfits like rain outfits or how the game generates outfits on townies.
And they just keep adding more clothes to their clothing categories so their outfits just gets weirder and uglier.
Maybe this is why sims on Batuu can only wear Batuu clothing, because they know their outfit generator is a mess.
I can recommend MC Command Center if you use mods, with that you can replace situational outfits with everyday clothing.