If you disable live weather and check the cloud densities, you will see that it has a range from 0.0 to 5.0. The problem in the current implementation is three-fold:
- Cloud layer densities are not individually independent of each other, no matter how far apart they are in altitude: For details, check out the bug report in Cloud layer densities are not fully independently controllable by layer
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Live weather cloud densities: Partly due to point 1, live weather might not be able to use the maximum density of 5.0 for any one layer, as it automatically affects the density for all other cloud layers. Result? Very weird looking low poly cirrus/high level cloud layers. To investigate the ambient cloud density, use the Weather Debug tool in the developer menu while flying with live weather and inside a cloud.
Keep in mind that we cannot be 100% sure of this, as no one in the community really knows how the weather engine processes data from meteoblue and whether the in-game weather panel offers even close to the full set of options that can actually be adjusted. In fact, you might be able to note that without live weather, we cannot even set a dew point value! - Rendering issues at high cloud densities: In some lighting conditions, densities above 1.0 result in artifacts such as grainy clouds, and clouds that look like ash. Not sure why this happens. If these issues are fixed, then you can get incredible moments while flying through clouds like what I show here (This is not live wx, btw): MSFS Cloud Surfing Demo - Potential and Room for Improvement in Live weather - YouTube
I discuss the issues in the weather system in more detail in this video here: Microsoft Flight Simulator Weather Depiction in 2023 - The Good, The Bad and Some Suggestions - YouTube