https://www.reddit.com/r/Mordhau/comments/fnmvdo/anyone_else_with_broken_cloth_physics_geforce_1070/

https://www.reddit.com/r/Mordhau/comments/bnamm9/cloth_simulation_not_working_although_my_pc_is/

https://mordhau.com/forum/topic/15642/cloth-animationsimulation-not-working-geforce-nvid/

Including myself, that is four people with a 1070 that don't have cloth physics.