Ah, gotcha! Character Animator tries to auto-detect the outline, but sometimes fails. It is usually because there is some discontinuous object in the layer. There is a property that you can set to “Contour” to force using the outline instead of the default “auto”. You could try just setting that.
Otherwise (or as well!) try going into AI/PS, go into isolation mode for the suit, then try using the laso tool around the suit to see if you can highlight something that snuck into the wrong layer.
The other thing to try is clicking the little mesh icon at the bottom of the “rig” and “scene” windows. It shows the mesh it allocated to the layer. This is very important to get right otherwise things will distort badly later. Sometimes it highlights the area that is wrong (the mesh looks funny around a point you did not expect).
Regarding artwork quality, looks good to me! I am a programmers with zero formal art training, so I cannot speak either! ;-). As long as its fun, who cares what it looks like... which I can say since this is a hobby for me, not work.
Oh, just realized my answer might have been not answering your question! I don’t know why the second clipping did not work and the first did. My understanding is not all Illustrator features are supported by Character Animator - you might have hit one.