Cloth only works correctly when creating 'cloth' object

I was just wondering if this is by design...

There seem to be two ways to create cloth in Unity.

1.) Go to GameObject -> Create Other -> Cloth Which seems to work fine

or

2.) On an imported mesh, add a cloth renderer and interactive cloth.

The collisions for this don't work. No matter what settings I tried, cloth with an imported mesh don't work. Even though the mesh is in the shape of what could be considered a piece of cloth. I also get strange artifacts, such as one polygon in my mesh shearing its texture, while the other polygon showing its texture correctly, or the mesh breaking into pieces.

Or am I doing something wrong in step number 2?

I've experienced similar things. I don't know if the PhysX libraries are just extremely old, PhysX cloth isn't implemented into Unity well, or what, but I've had very little success with cloth behaving properly even when I try to use the default plane.

What you might want to try is creating a default cloth and setting its model to your imported model, rather than starting from scratch. Let me know if that results in any change.

report a bug then! :(