I basically deleted everything on the mesh and left just the bag on the thigh. In game, character appears naked. I'm using the exact export settings I'm always using really baffles me why sometimes it works and sometimes it doesn't... I'm also gonna do 2-3 more exports next, and I'm sure I'll be able to at least do so for some bracers. Bracers/Boots so far havent given me any trouble.
I also suspect that the issue here might be that maybe the mesh is there, but somehow is not using the correct maps, so it fails to encounter a proper Alphas, so defaults to a full black alpha (which will ofc render it invisible). Although unsure if that would explain the nakedness, kinda hard to tell since the game engine uses tons of alphas to hide stuff/tint/whatever...
Well, there are two problems I could see:
1) The original GR2 file had two sub-meshes, PL_M_ARM_Cloth_A_Torso_B and PL_M_ARM_Cloth_A_Belt_B. In the export, the PL_M_ARM_Cloth_A_Torso_B mesh is not present at all, which may be an issue.
2) Lots of vertices were removed from PL_M_ARM_Cloth_A_Belt_B to the point where the mesh only has one influencing bone, with an uniform weight of 255. For some reason, Granny considers such meshes to be rigid, instead of skinned (probably an optimization), which again might cause the composition to fail. Adding a dummy weight of 0.0001 to one of the other bones can fix this one.
EDIT: There is a possible workaround for 2), available here:
https://dl.dropboxusercontent.com/u/32263228/dos/gr2/skin-test.zip