Replace faulty fabric (7)
I believe the answer is:
percale
'fabric' is the definition.
(percale is a kind of fabric)
'replace faulty' is the wordplay.
'faulty' indicates an anagram.
'replace' is an anagram of 'PERCALE'.
(Other definitions for percale that I've seen before include "Cotton fabric used for sheets" , "Fine cotton fabric often used for bed covers" .)
I've seen this clue in The Independent.
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