What the two DOE examples say—and do not decide
DOE's Building America batt guide says active knob-and-tube wiring must be addressed by removal before that guide's retrofit. A separate DOE weatherization installer job aid flags live wiring and gives conditional alternatives. The scopes differ; neither chooses a method for this home. DOE batt guide; DOE weatherization job aid 4-1 (June 2024).
Neither source establishes wiring presence or active status here, current local requirements, or permission to cover wiring; neither sets a universal remedy for this home.