Fabulous place where Melvin appeared in a new coat (7)

I believe the answer is:

camelot

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'fabulous place where melvin' is the definition.
I can't judge whether this defines the answer.

'appeared in a new coat' is the wordplay.
'appeared' becomes 'mel' (I am not sure about this - if you are sure you should give a lot more credence to this answer).
'in' is an insertion indicator.
'a new' indicates an anagram.
'coat' anagrammed gives 'caot'.
'mel' going within 'caot' is 'CAMELOT'.

Can you help me to learn more?

(Other definitions for camelot that I've seen before include "Scene of King Arthur's court" , "Fabulous city" , "legendary town" , "Idyllic place" , "Lerner and Loewe musical" .)

I've seen this clue in the Evening Standard.

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