No, normally folded cloth isn't damaged but as I stated, I can't imagine what caused the 'wrinkled' cloth enough to worry about it affecting the lay. Cloth can be damaged if it is 'kinked'. If the part is not highly stressed, reconsider using epoxy for it. For one thing it will cost a bunch more with no real benefit over polyester and second, normal glass cloth is formulated for polyester resin that dissolves the binders whereas epoxy won't which makes layup harder to do and cloth wetting is not as efficient.
For any normal street/strip car part I can think of, polyester would be my choice.
Also, you need at least one layer of random thread fiberglass mat between your gel coat and the cloth. If you put the cloth on as the first layer under the gel coat the pattern of the cloth will print through no matter how much you sand and polish. The mat isolates the cloth weave pattern from the surface and allows a smooth surface.