For those wondering, I pulled out my old Palpatine and was really surprised. I don't know what version this is, but the old one I had has a much better cloak. The hood is stitched to stay in place and keep the shape.
The one on the left of the screen is the new one.
And comparison of the heads
Under the cloak
Took a while to even get the hood to look somewhat ok. It just keeps puffing up and not sitting on his head.
However, I went and put a small piece of double sided tape on the inside top of the hood so that the hood will sit on the top of his head and it looks much better.
Here's a comparison with the tape on the hood with the new cloak.