There are two distinct parts to the answer; it's really a topic that calls for a professional, on-site opinion.
There are no limitations as to wiring methods and panels. Any recognized wiring method can be used with any panel. The details of the wiring method must be followed.
If you're re-wiring a house, that is almost certain to be a major enough job that modern code requirements will have to be met. This means a complete re-arrangement of the circuits, more circuits, different devices, etc. Only your AHJ can give you the 'right' answer.
If you're responding to restrictions from insurance carrieir, they'll probably want the old fusebox and 60-amp service replaced as well as the K&T.
Finally, if you're thinking of just replacing the sections of K&T that run through the attic, I cannot think of any way for you to do that - and still comply with rules regarding the accessibility of junction boxes, grounding, etc. There's no quick and easy fix.