We sometimes have hissy fits about clothing too. Things are too tight she will have to yank and pull at them to stretch them before she will wear them. Often refusing to change the next day. We spoke to a doctor about this and she has a sensory issue something she hopefully grows out of but i am not so sure about it.
I've had this my whole life (in 30s now). I can give you a few tips for managing it.
1. The process of heating cotton tightens it. This is basically "shrink in the wash" if you want to Google that and read about the effects of heat on cotton. When you apply heat the fibres tighten up, and after a bit of wear (both meanings) it loosens up again. You can reduce the amount of tightening massively by washing on a low heat (30c) and tumble drying on low heat (cupboard dry only, not super ultra dry mode). You should teach your daughter about this, it will likely be important to her comfort for her whole life.
2. When you take clothes out of the washer and transfer them to the dryer, give them a good shake first. If you're doing it right you won't need to iron anything other than shirts. This serves two objectives: a) avoiding the source of heat from the iron, b) expands the cotton between washing and drying heat sources.
3. Stop fighting her, it is impossible for you to control how she feels in her clothes by arguing about it. If she doesn't like tight clothes, teach her how to loosen them. Give them a good shake or something before wearing. Don't make her feel anxious about it, it's an anxiety type of problem so a battle with you only makes it worse. The more comfortable she feels with you, that you will make her life better not worse, and how comfortable she feels in general (for me this is massively affected by clothing), the more likely she is to communicate with you and let you help her with other stuff.
4. Stop providing her with clothes she doesn't like. Make sure she's informed about washing labels as per earlier point, then delegate clothes buying to her. Provide her an increased allowance on the understanding that she uses it to buy her own clothes. This is good for you because it will reduce arguments, and it's good for her because she will learn to manage money. This process of increasing allowance in return for her buying her own stuff also works well for toiletries, shoes, school supplies, school lunches. She will make some mistakes, but that's part of learning, don't get mad, she's probably just embarassed so let it slide.
Now I want to make a more general point. This clothing issue is an anxiety issue. Your kid may feel under pressure. This might be a symptom of bullying. You
must not impose your will on her, she will see you as a bully. If you're not part of the solution you're part of the problem. This means use your resources as an adult to help her, inform her, but let the decisions about her life be hers.
Imagine your kid's view of you is a pie chart. One slice is how much of your interactions make her feel good, the other slice is how much of your interactions make her feel bad. Improve the pie chart. gl.
edit: forgot to mention that clothes are a resource tradeoff. For the same money you can either have: a) a wide choice of clothing, or b) fewer clothes but replaced more frequently. Newer fabrics feel better, she might prefer b. Kids grow anyway, so planning to replace frequently is wise. If you give her money for birthdays or christmas, she'll probably put it into replacing clothing.