I say this begrudgingly and with hesitation…
I rubber-banded some of this fabric to form a pouch about half-way into a wide glass, then stuck it under a sink faucet and turned the water on all the way. Saw no water come through. Left it to sit with water in the "pool." Didn't find any leak through.
The areas of my project where all the coating wore off were primarily on the edges… ie, around the neck opening where I pulled it on/off a couple times, there's nothing but the royal blue showing on both sides. But you can't really test for waterproofness at the edge of a piece of fabric. The area I tested on had worn down significantly, but not quite all the way. So maybe this stuff will work. I'd try a smaller quantity of it, maybe, and see how it goes before going full bore into the material?