Dwell, like a monk who's dressed (7)

I believe the answer is:

inhabit

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'dwell' is the definition.
(I know that dwell can be written as inhabit)

I don't understand the remainder of the clue.

(Other definitions for inhabit that I've seen before include "Dwell in" , "Live in, occupy" , "Occupy - settle" , "Live in (a place)" , "people" .)

I've seen this clue in The Daily Express.

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