Actually managed to fix the position of the armor... the actual .png image apparently mismatched Lona's body when overlapped so once I realized this it was pretty easy to fix with photoshop. Managed to fix the layering problem of the armor by adding it inside CHSConfig on the game files... tried to create a CHSConfig file inside the mod to avoid modifying game files but failed pathetically at trying the game to read it... I tried using this script but not sure if it even works...
module DataManager
self.singleton_class.send(:alias_method, :load_mod_database_YourModName, :load_mod_database)
def self.load_mod_database
tmpLonaCHS = FileGetter.load_lona_chs_settings_from_dir(folder="XXX",chsh=false)