I noticed after extensive testing, that women's dresses are too big around their arms and shoulders, making it seem like their clothes are floating around them.

When a man wears a dress, there is no issue, the clothes fit.
When a woman wears a man's clothes, there's no issue.
When a woman wears armor, there's no issue. There's even a lot of armor that is clearly modeled to be on a female frame.

But when a woman wears a dress, the top of the dress floats over her shoulders. It looks like the game has maybe equipped the male version of the dress on the female model. When I disable the mod, then the dress fits the female characters like normal. This affects all female characters.

This is also noticeable with a lot of shoulder garments like scarfs and many pouldrins.