There is some icosphere. It is collision object. And there is some cage. It is controlled by Soft Body. Icosphere goes through the cage. There is the mesh which is using cage for Mesh Deform modifier. And there’s proxy mesh which both uses cage and is another collision object for cloth. Got the point? If not, here’s question: how to set some collision object only for cloth and not for soft body? In another case there will be recursion: cage > proxy > cage.
Probably the solution is to move cage to second layer, and icosphere to both?