I did not ask at the time. On my drive home I thought that I should of because I get a lot of jobs removing knob and tube and it would be great to tell the customer when or if this went into effect.
There has never been a NEC written restriction on K&T conductors or loom entering modern circuit breaker or fuse centers.
There are, however, possibly local ordinances that are involved. My area of work is an inner City Metro of 3 million. The local inner-city electrical ordinances have regulated the exposed length of K&T in unfinished basements and unfinished attics for near half a century. In creating the local ordinance, K&T insulation was deemed subject to undo deterioration when exposed to many basement humidity levels and, similarly, when exposed to the heat of attics. Maximum allowed lengths, under the local statutes, were capped at 18 inches, which was deemed long enough to effect a wiring method change using modern materials and NEC methods.
If the 18 inch length reaches the modern service center enclosure, then it takes less labor and material to go straight into the service center.
And that last line gives, what I think is, the philosophy of most of the historic service upgrade solutions that one sees that others did. Increasing the service capacity of the original K&T service, as noted by others in this thread, most times resulted in the new service center being in a different location, whether just beside or off somewhere in another part of the structure.
Back feeding the old K&T fuses took the least labor and material (as noted by KWired with the example of the "load wire" in the service conduit).
A middle amount of material and labor generally was removing all the fuse blocks, turning the old K&T panel into a junction box, and extending the existing K&T branch circuits to new overcurrent protective devices in the new service center, making the new home runs out of new non-K&T wiring methods.
And, generally, the most labor intensive, back feeding individual K&T circuits by bringing new homeruns to a receptacle box or other location containing both the hot and neutral to effect the transition from a modern wiring method to the original K&T. While labor intensive, this did result in the complete removal of the old K&T fuse cabinet.
Competitive bidding by electrical contractors, and limited-depth pockets of customers, mostly resulted in the buying of the least expensive (think "least labor") solution.
So it was "market forces" not
Code that shaped the assemblies we see that upgraded K&T services to newer and bigger services.