A well-cut length of cloth (3)
I believe the answer is:
ell
'length of cloth' is the definition.
(historical fabric measurement)
'a well-cut' is the wordplay.
'ELL' is hidden in amongst the letters.
But, I'm uncertain how the hidden word is indicated.
Can you help me to learn more?
(Other definitions for ell that I've seen before include "distance" , "approximately 45 inches" , "Old measure equivalent to about 45 inches in England" , "Former measure of length" , "Embellish with old measure of length" .)