In Philadelphia in 1996, I had a company blow in insulation to my wood-framed, plaster+wood-lathe covered cavity walls without removing the inner walls. They created a series of 4"/10cm holes at the top of each bay and blew the insulation in that way.
ps. I later found out that this is a terrible idea for vapor control reasons.
Another benefit: when you take out the inner walls in an old house, you are going to find layers and layers of… stuff. Like 2cm of styrofoam (insulation in a nineties way) and a new layer of drywall on top of whatever chipboard/grout/newspapers where put in in a distant past (at least in my old house).
https://www.nachi.org/knob-and-tube.htm
In any case, if you overheat Romex and destroy the insulation, you can create a line-to-ground-or-neutral arc or short. If you overheat knob and tube and destroy the insulation, you are quite unlikely to cause an actual problem — there’s nothing nearby for it to short to.
Modern insulation tolerates rather higher temperature than old insulation, and knob and tube has plenty of other problems, but this isn’t really one of them.
(If GCFIs on branch circuits or feeders were widely deployed, even at higher thresholds than 5mA, and everyone used either grounded metallic conduit or bundles of wire with a bare ground in the middle (like Romex or NM-B), then insulation failures would be quickly detected.)
"K&T wiring is designed to dissipate heat into free air, and insulation will disturb this process. Insulation around K&T wires will cause heat to build up, and this creates a fire hazard. The 2008 National Electrical Code (NEC) requires that this wiring system not be covered by insulation."
"I'm sorry sir but your grandparents didn't have grounded outlets so you can't install have them either."
I have no affection for the wiring - nostalgic or otherwise.
And, yes, vapor issues.