JRPGs, and games in general, typically cut out the more mundane parts of life in service of making a more enjoyable game. With the exception of survival games, in which things like eating, drinking, sleeping, and the like are core mechanics, you usually don't have to worry about basic things like that in games. Xenoblade Chronicles 3 certainly doesn't try to introduce survival mechanics like that, though cooking certainly is a thing, and yet it does have one very odd option you can do while resting.
You might notice that during your extensive travels and hard-fought battles, your party's clothing will start looking a little dingy. While realistic, it isn't exactly a common thing for games to dirty up your characters and require you to actually do some laundry to keep them looking fresh. However, that's exactly how it works in Xenoblade Chronicles 3. There are no laundry mats or dry cleaning shops in this fantasy world, leaving you to do the cleaning yourself. Here's how you can clean your clothes in Xenoblade Chronicles 3 and why you would even want to do so.
Further reading
Xenoblade Chronicles 3 beginner's guide: 9 tips and tricks to get started
Xenoblade Chronicles 3: Ouroboros Fusion guide and all partner combinations
How to clean your clothes
Cleaning any dirty and ragged outfit in Xenoblade Chronicles 3 is very simple. You can do so essentially from the beginning of the game (Chapter 2), and it doesn't require any special items or materials.
Step 1: Find a Rest Spot.
Step 2: Select the icon of a shirt with sparkles on the far right called Clean clothes.
Step 3: The entire party's clothing will now be fresh as a whistle.
What does cleaning clothes do?
You might be wondering, and for good reason, why you should bother with this mechanic at all. Obviously, it will make your characters look better if they're not running around all dirty, but is there any other benefit to a fresh outfit?
Mechanically, no, there's no downside to running around in stained shirts and pants all game. However, over time, you will start to get little lines from your party about feeling dirty and gross, eventually leading to a scene where you're forced to have a wash.