Unless there is a local amendment the inspector does not get a choice. The NEC allows extending existing K&T.
II. Installation 394.10 Uses Permitted. Concealed knob-and-tube wiring shall be permitted to be installed in the hollow spaces of walls and ceilings or in unfinished attics and roof spaces as provided in 394.23 only as follows:
(1)For extensions of existing installations
(2)Elsewhere by special permission
Bob Badger Construction & Maintenance Electrician Massachusetts
I agree that for the most part, extending K&T should be avoided. In this case it must be terminated and the attic is not accessible, so my only choice is to extend it to the point where it is brought to the laundry room where no one gives a darn if a blanked off box is sitting near the edge of the ceiling. Trust me, all my feeds will be brought off a subpanel in modern day romex. It turns out that I did pull some K&T from a job that I demoed yesterday. The inspector gave me the okay to use these parts.