Cloud was looking for Sephiroth, but he only asked people if they had seen a man in a black cape. He never mentioned his long silky alabaster hair or rippling pectorals or anything, so the people he asked mentioned any black-caped Joe they caught sight of. One of those, evidently, was one of the tattooed people in black cloaks making his way to the Northern Cave for Reunion. A separate entity of a similar profile, you see.
And, not to fault you, Raist, but what I just said about Jenova posing as Sephiroth and all is fact, not theory. The game demonstrates it and even explains it in the text; it's just that a lot of people don't seem to take notice of it for some reason.
