We should keep in mind that we operate in differing areas, with different construction styles partly due to age of the homes, and a different culture mindset.
About the only time I see breached closets, is by flippers trying to save a buck, and it is usually a major hack job. Many of these older homes do not even have closets. These people do not take pride in their work. Faster and cheaper is the name of the game. On the flip-side, most homeowners take pride, and respect the older homes for what they are. A piece of our culture and history. They normally will not hack-up their home to save a few bucks.
Therefore, returns are normally installed in the exterior walls, using the stud bays, without ducting, as these homes rarely have any insulation in the lathe & plaster walls. In most cases, this method is inadequate.
If the unit is still safely installed, get a proper furnace efficiency test done before considering a change out. Chances are very strong that a new furnace will pay for itself quickly but an economic analysis should be done.
In 1977, I was part of a program that offered free furnace efficiency testing for homeowners. In 2 houses on the same street, we saw coal to oil burner conversions on the same model furnace from the 1930/40’s: from memory, one was in the high 50% range and the other was in the low 70% range…there was 15-17% difference.