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I am looking for a safe way to deal with this item rerouting new loomex may not be an option at this time.
I was thinking load center with afci breakers.

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.

I was thinking loom over the wire and a 2 screw connector.
This must of been the old service at one time. There is a 100 amp panel in the basement now.
I definitely have to get him some fuse restrictors while working on this

Looks like I should megger everything to as there is 25 and 30 amp fuses installed atm.

And I dont think i have any neutrals too attach to a new load center for each circuit either

No neutral = no gfi

Gee i think i found the the fuse panel that is in my avatar

And ohh this is all mounted to the back side of a wall the "cover" is a piece of plywood . that white is some sort of abestos paper too

Ohh that 3 wire loomex is 10/3 and is feeding that mess.

Doug,

How about using the existing location as a splice box and run new wiring down to a centralized breaker panel?

I am wondering what year this stuff is from too.