OK, so you need to rotate a character limb inside the coat sleeve and keep it mostly static.
One thing for certain, you will not be able to achieve that with skin weights.
You might.. just might be able to do that with physics, but that is whole different story.
If your end production is outside of iClone, then even if you achieve acceptable results in iClone,
You have to find a way to "sneak" baked vertex animation produced by soft physics into your target app (maybe alembic).
I will try to put something together to show you basics later on... but it might be very tedious workflow and no guaranty for perfect visual.
And you also would need an iClone. CC would not help much.