The cache cleanup unfortunately did not solve the issue.
Save file: https://www.dropbox.com/s/ghnwnq4p7uwtoae/a702650bfe7b43a48e4a2caebccd9e12%2024552615%20CaedNua.savegame?dl=0
Output log: https://www.dropbox.com/s/9dbxg2a94dgdxqq/output_log.txt?dl=0
Thanks!
Not sure what the exact steps to recreate were but when equipping a cape on a smaller character race (dwarf) after a taller race (human) had it equipped, the cape appears to hover above the smaller character at the original height when the taller character had it equipped.