I wouldn't use afci anywhere not required by code. They can have tripping problems.
gfi dead-fronts are less expensive than gfi breakers, but must sit outside the panel. gfi breakers look nicer.
It looks like you have 3 wire circuits, so you will need some 2 pole gfi breakers.
What is the new procedure for putting K&T into a knockout?
You don't have many circuits, so when you install 15 amp breakers, you might have a problem.