Because clothes are now a normal item like each other, it would be silly to give the player a new set every time he respawns. In no time he would cheat his way into a huge stockpile.
So in 1.26, you only get your tattered clothes on first spawn. Every respawn after that, you appear naked. Or rather in the boxer shorts :-) Tough.
I’m working hard to get the game released for Christmas. There’s a new plant coming, with 3-stage growth setup. Almost finished working on it. It is to do with clothes. I’m sure, as usual, you can guess what it is: