We study the model of the totally asymmetric exclusion process with generalized update, which compared to the usual totally asymmetric exclusion process, has an additional parameter enhancing clustering of particles. We derive the exact multiparticle distributions of distances travelled by particles on the infinite lattice for two types of initial conditions: step and alternating once. Two different scaling limits of the exact formulas are studied. Under the first scaling associated to Kardar-Parisi-Zhang (KPZ) universality class we prove convergence of joint distributions of the scaled particle positions to finite-dimensional distributions of the universal Airy$_2$ and Airy$_1$ processes. Under the second scaling we prove convergence of the same position distributions to finite-dimensional distributions of two new random processes, which describe the transition between the KPZ regime and the deterministic aggregation regime, in which the particles stick together into a single giant cluster moving as one particle. It is shown that the transitional distributions have the Airy processes and fully correlated Gaussian fluctuations as limiting cases. We also give the heuristic arguments explaining how the non-universal scaling constants appearing from the asymptotic analysis in the KPZ regime are related to the properties of translationally invariant stationary states in the infinite system and how the parameters of the model should scale in the transitional regime.