I haven't tried it, and I don't remember where I saw it but... I read about a technique that sounded really good to me.

Put masking tape on the hull along both sides of the seam to be glass taped, about 1/2 inch inside the bound edge of the tape. So, if using 3" glass tape, leave a 2 inch swath open between two masking tape stripes. Glass over the seam with the glass tape, right out over the mask. Then when the epoxy is green ,use a razor blade to cut the glass tape at the very edge of the masking tape.

This takes off the binding on the glass tape and leaves a smooth edge to fill.

I would certainly try to smooth the glass tape edges before going over it with cloth! Otherwise, the cloth will be forced up and over the bump, and you can't sand the bump down without cutting into the cloth.