Sell or dismantle clothes and wear them as an Outfit
In version 2.0+, there’s no longer a need to keep clothes in your inventory. Previously acquired clothing items can now be worn cosmetically. Clothes are available to choose from at V's apartment via Wardrobe. Equip an outfit from Inventory > Outfit and you’re good to go. Sell or dismantle clothes for money/components and to reduce weight. If they have stat bonuses, they need to be equipped.