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I'm hoping someone can clarify this for me.

I know when you're applying for clerkships/jobs etc. after law school you need to submit a law school transcript, however now I am hearing undergraduate transcript needs to be submitted as well.

Is this true?

You typically do not need an UG transcript for law firms, unless you are applying for a patent position. I don't know about clerkships, but I assume many want to see an undergraduate transcript.

Some judges will request an undergraduate transcript for clerkship applications. Some government agencies might request undergrad transcripts, but I doubt any other employers will care.

The firm I'm going to be working for this summer did actually request an undergrad transcript at OCI and I'm not IP - but they were the only ones and I think it's pretty unusual (again, unless you're IP).