I don't know about the wiring used in railway signalling specifically but AIUI a big issue with old rubber wire insulation generally is that it goes hard and becomes prone to cracking but as long as it's not disturbed it does still insulate fine.
This means you get backed into a corner where modification or even repair work risks causing more problems than it solves.
The railways like PCP type rubber cable, as it is robust and will not melt (like PVC) when wires are pulled over each other as they are run in.
Four problems:
For external cables, after fifteen to twenty-five years (typical if buried, lasts longer in surface concrete troughing), the sheath and insulation starts to become porous, letting in water. This causes earth leakage faults and eventually one or more cable cores will corrode and go open circuit.
For internal cables, especially in in a hot equipment enclosure or near/above a heat source, eventually the insulation goes brittle. Then any movement will cause cracks, then the insulation may literally flake off. This is called dry degradation.
Still with internal cables, sometimes the insulation goes mushy and wet. This is a reaction between the metal conductor and the insulation. This is known as wet type degradation.
For terminations and internal wiring, the past practice of using mineral oil to protect the terminals from corrosion has a side effect, it affects the PCP rubber. The insulation and sheath is affected, the sheath then splits.
And unfortunately, rather than dealing with it as soon as problems are noticed, it gets left, and then it becomes unpractical to work on…