The "disableElementsByType" attribute in assets\survival\itemtypes\wearable\seraph\armor.json implies that it's an intended function, however none of the armor types actually hide anything other than my hair. It's very annoying since all but the most skintight of clothing ends up clipping through armor, severely limiting the selection of clothing which can be worn underneath armor without causing an aesthetic mess.
I only just bought the game last week, so I don't know if this is a recently introduced bug or if it's how armor has always interacted with clothing. I couldn't find any other posts mentioning how clothing clips through armor, though, which seems strange if this is how it has always been; surely someone would have complained about it?