Howdy! This looks like true “cloth” wiring to me…the kind that should be called out on a Citizens Four Point. As opposed to NM cable with thermoplastic conductors in cloth/braided sheathing which, if in good condition, is considered “safe”. Is the branch circuit wiring identified in this picture considered unsafe? Thoughts? Thanks!
I doubt someone could tell for sure from that photo if the wire is safe but I will say that it appears that only the cloth covering is frayed so if the rubber insulation on cloth wiring is intact then it should be OK.
Welcome to the forum Mike. Have fun and good luck. 
Tell me more about these thermoplastic conductors in cloth/braided sheathing. I’m not familiar with that.
Be careful! Could be an Eastern Diamondback rattler shedding its skin. Seriously though, I’m more concerned that there are branch circuits with no ground. You should add a comment in the report. The yellow NM 12 gauge cable indicates that some upgrading was done.
Sounds like a trick question. 
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