(In tithe US) It's not safe or up to code to cover knob and tube wiring with insulation because that can cause it to overheat and start fires. But this is modern Romex wiring, not 100+ year old wiring. Many wires in your house are running through insulation - like everything in an exterior wall. They're designed for this.
this post was submitted on 16 Jul 2023
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lol I made it half way through your comment and went "That doesn't look like knob and tube! It looks like Romex!" and then literally the next sentence said the same thing.
Ha, realizing the oddity of my phrasing in hindsight. My guess was OP had some smidge of a memory hearing that insulating over wire was bad, so thought it would be worth a little context.
Thanks for the insight!
No.
1 - Breaker will go before you can pull too much current through that wire for it to get hot.
2 - LED Lights aren't breaking any breakers.
Appreciate it!
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Keep up the good work!