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I can't deal with cloth for figures as small as these. A cape needs sculpted folds that match the rest of the figure's clothing. I personally feel pic related is the best solution. The cape is two posable pieces that can be overlapped to make it look smaller.
I've had a bad experience with the heavy plastic cape on Guts Band of the Hawk version. Fucking peg snapped off like it was nothing. Figure was a disaster.