Coincident vertices in triangle

When creating cloth assets you may get the warning "Failed to generate skinning data, found coincident vertices in triangle." This is similar to a warning you'd get from the legacy cloth paint tool, "Failed to generate clothing sim mesh due to degenerate triangle." The solution for legacy cloth is to use "Merge by distance" function in Blender (or equivalent function in other modeling tools) to merge vertices in close proximity until the warnings go away. However, this solution doesn't seem to work for panel cloth assets as easily as it did for legacy cloth for whatever reason. It's still experimental, so a future fix is possible.

A solution for panel cloth assets is to open the skeletal mesh asset, go to the asset details panel and reduce "Percent of Triangles" by some amount until the warnings go away.

In my case, I reduced the amount by 0.1 each attempt and the warnings went away at value 0.8. This requires pressing "Apply changes" and refreshing the mesh import node in the cloth asset graph in between attempts. It may also be possible to use other editor mesh reduction operations, such as the "Simplify" or "Remesh" operation provided by the skeletal mesh editing tools plugin. Make sure to duplicate your mesh before attempting this so as not to make permanent changes that can't be undone.