On their web site they protest against the claims it would
be used for this purpose:

Cyclone Power Technologies Responds to
Rumors about “Flesh Eating” Military Robot
"POMPANO BEACH, FL, July 16, 2009. In response to rumors circulating the internet on sites such as FoxNews.com, FastCompany.com and CNET
News about a “flesh eating” robot project, Cyclone Power Technologies Inc. (Pink Sheets: CYPW) and Robotic Technology Inc. (RTI) would like to set the record straight: This robot is strictly vegetarian."
http://www.robotictechnologyinc.com/images/upload/file/Cyclone%20Power%20Press%20Release%20EATR%20Rumors%20Final%2016%20July%2009.pdf

They state the "biomass" it would use for fuel would be plants, wood, paper, etc., and that it would be able to distinguish this from unsuitable materials such as rocks, glass, metals, etc.
Not a trivial feat since it would also want to use dead plants or trees.
But since it would want to use processed biomass such as paper, cardboard and the like, I assume also it would conclude clothing was suitable for ingestion, whether or not it was being worn ...

Bob Clark