I've never heard of a seatbelt shredding from a collision. They might fail (rare), but I seriously doubt they could shred without having already been damaged.
More likely, the person quoted was not at the scene and was speculating on possibilities, just like we are. It's also very likely the person was misquoted or the quote was taken out of context. (My husband used to be the spokesman for his fire department. It happens a lot.)
Any number of things could have happened, including the bulky clothing theory, not wearing the seatbelt properly (under the arm, etc.), a previously damaged seatbelt, the stars aligning in such a way that something went wrong despite everything being "right," etc. It's often very hard to know exactly what happened in a crash.
As for the top tether failing, it's very possible it wasn't in use, but was free-floating, making it appear to responders that it had been attached but failed. Or maybe it really did fail. But as others have said, that wouldn't have resulted in ejection unless that was the ONLY way the seat was secured.