Smart-casual is a common policy for airport lounges and it's not particularly restrictive. Such regulations prohibit lounge customers from wearing short clothing, offensive slogans, pajamas and fancy dress, to name but a few items.
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In other words, smart-casual is a good rule of thumb to follow when deciding what to wear in an airport lounge. This means being neat and presentable without being too formal. However, you will find that there are several airport lounges that don't care what you wear as long as you're not offending anyone.
Yoga pants, tracksuits, slacks, all acceptable for wearing on a flight and therefore in a priority pass lounge. And yes, I have seen people in pajamas in the lounge before evening flights (they take a shower, put on PJs). I wait until I am on board the plane before putting on my PJs for long haul flights though!
If it's warm, it's OK to wear shorts. T-shirts are fine too. However, if you want to look at least halfway attractive and respectable, at least go for long pants and a button up shirt.
If a lounge is accepting Priority Pass members, you'll have to present your membership card at the front desk. This could be the physical card that's mailed to you after you activate your account or pay for your membership, or a digital card that you store either in your phone's wallet or in the mobile app.
From what I've gathered, t-shirts, jeans, shorts, and sandals are obviously allowed. A sweat suit is allowed too. (While I was comfortable with a Metallica shirt and jeans, I was too embarassed to wear sweat pants and an old t-shirt, but I guess some people do it.)
While no major airline has an official dress code, they do have policies on appropriate dress. Sometimes, those policies are enforced and go viral. Remember getting dress coded in school?
Lounge suit dress code means wear any other colour suit, but the ones you would typically wear to work. For example, you can consider lighter greys and beige colours if you are a summer wedding guest. Or wear a tweed suit in winter. Wear a bolder burgundy lounge suit to a fun relaxed event.
Yup, everything is free at Amex lounges. But be sure to factor in the annual fees of the American Express cards required to enter: $550 for Delta SkyMiles Reserve, $695 for Platinum, and for the by-invitation-only Centurion card, $5,000—plus a $7,500 initiation fee.