I've always loved this sort of cloth animation. I think the first one I saw was dissimulate's tearable cloth demo on Codepen - I can't believe they wrote that code 9 years ago!
Here's mine from 14 years ago https://www.youtube.com/watch?v=G05M_Y6NQVM
It's very simple to implement a basic setup like this, and I agree that the results are super cool.
Video game Hitman from 2000 had cloth. Mirror's Edge from 2008 had tearable cloth. And I am pretty sure they weren't the first.