Well, I've asked around on the forums and it turns out that the CopyItemAndModify function currently doesn't work with the new 1.68 cloaks. However, it will be fixed in the next patch so all the scripting I did wasn't a total waste.
Ungred, the tailer in the bazaar, will be able to alter cloak appearances as soon as Bioware fixes this function.
I updated instances of all the standard toolset cloaks last night and they are all available in Ungred's store. I will be working on fixing Smith Hold's custom cloak appearances this morning.
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