How body clip work
Body parts are hidden using texture masks to manage the OpacityMask. So everything is handled in the character body material.
Here is an example in MI_ACC_HumanPPVSkin, which inherits from M_ACC_HumanSkin_C:

In the material function MF_ACC_BodyHideMask_2, you can see I combine 3 texture masks:

Example of usage in DT_ACC_EpicHmn_AM_Item:

The texture is applied in the Blueprint BP_ACC_IPH_Common, within the OnReceiveEquip function. You can see the relevant node there:
