The title says everything, clouding swarm's doesnt grant invisbility if someone activated innerlight in the last 5 seconds and the invisbility is lost if somebody uses it during the swarm.
Now, it's probably working as intended since it's been the same since 1.6 with radiant mage light and flare, and the point of new active inner light is to remove any kind of invisbility but however, this needs to be looked at, and I hope changed.
With the recent buffs to this skill, a lot of magicka build especially group players will run inner light on at least 1 bar so in a medium/large scale fight its very unlikely there won't be anyone using it which would make the clouding swarm morph useless if it remains as it is. Of course invisibility needs counters and I'm fine with it working for cloak, but a 158/250 cost ultimate shouldn't have such easy hardcounter especially since the clouding swarm user can not anticipate it nor counter inner light (unlike meteor for example..)
Clouding swarm grants a 6 seconds invisibility with a cooldown of roughly 50 seconds, can already be countered by mark target, radiant mage light, revealing flare and on top of that comes with many disadvantages (weakness to fire damage, 9% more damage taken, fighters guild skills...) so I would dare to say its fine as it is, or at least shouldn't be completely useless when one ennemy uses one of the most powerful buff for magicka builds. I don't know why anyone would want to be vampire and morph to clouding swarm if this change goes through considering the strength of fighters guild skills and the rise of magicka dragonknights.
Also I will use this post to point out that mark target makes somebody in clouding swarm visible for everybody (and not only the nightblade using mark as written in the tooltip) which needs to be finally fixed after over 1 year.