I think in that context you could say that the dress is "in", but a sentence saying that would not have any space left for "the woman". If you do say "The woman is in the dress", it means something else, namely, she is wearing it, which is not the sort of "is in" that "fait" allows.
I may have gotten some of this wrong, as I don't really speak French so much (just learning like the rest of you's), so please correct me if there is some problem with this reasoning/explanation.
English stands apart as offering two verbs for the one of most: faire in French, hacer, in Spanish, machen in German. A woman "doing" a dress doesn't make as much sense as her being the one fabricating the dress...This particular sentence is fascinating for it's proverbial meaning: "The woman makes the dress..." as in, "The dress is only as pretty as the woman who wears it."
This comment, so nuanced in its subtlety, is easily translated, "The woman makes the dress...", as in, the dress is only as pretty as the woman who wears it. But, what is also missed, is the nineteenth century sexist assignation of a woman's roll: "The woman makes dresses." It's the woman's roll to sew.
Not all hints are accepted. It all boils down to context. Usually only the top hint is correct because the even though a word can have two meanings, it's not necessarily a good idea to assume that it is one of them. Femme is usually assumed to be woman if there is nothing around it related to family. It's a similar case with fille and garcon which can mean daughter and waiter, but are usually girl and boy.