Render optimizations are causing the cloth render data to be updated one frame too late after an off screen cloth object has been teleported back on screen. The optimisation triggers itself after a few second of the cloth object being off-screen.
This problem affects licensees who are teleporting their characters off-screen and disabling the transform tick update for optimization purpose.
The only workaround is to set Visibility Based Anim Tick Optimization to Always Tick Pose and Refresh Bones, which is not a long term viable solution.
Result: Stretched geometry appears on screen between the off screen position to the new screen position for one frame.
Expected: The cloth correctly renders after the teleport operation without stretching across the screen.
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-124530 in the post.