Old Wiring Safe to Use for Ceiling Fan?

Hi All, Long time lurker first time poster. I'm In a bit of a conundrum here with my 1929 home that has mostly cloth wiring. In our living room I noticed fixture wires sealed up and not used. My question is whether or not I can use this safely for a ceiling fan. Traditionally, I would bulldoze my stubborn self through and just hook it up, but this one has me scratching my head. ​ ​ https://preview.redd.it/6qkpwlu3re641.png?width=3024&format=png&auto=webp&s=346a46a08d10f7b6725e68a71bdfb8ddaf9d8403 I have tested the wires and they are live. Also, when removing the switch for the side light fixtures that are the only lights that exist in the living I noticed what seems like a sealed up switch wires. I have had the home inspected for knob and tube pre-insulation work and the electrician (whom I think I trust?) said I was good. ​ ​ https://preview.redd.it/lrdp3tf6re641.png?width=3024&format=png&auto=webp&s=cd6900c852a0d7587523bb53f060c6103eee7791 My question is, like the other fixtures in my home would it be OK to use this wiring? I find it weird that this was sealed up and side light fixtures were installed. You can see here that someone did work in the ceiling to this closed up junction box housing the closed wires. ​ ​ https://preview.redd.it/61mcdc6fre641.png?width=4032&format=png&auto=webp&s=f324b7bf4033781b50493ea817f7ffcf5f959865 So I ask the DIY gods: 1. With this info, do you think it is a problem for me to do this install? 2. Would my prior approach of installing black to black and white to white after identifying the switch make the most sense? I'm pretty sure the capped wire on the right is the switch and the other 2 are power potentially supplying an outlet somewhere (I have seen this already elsewhere in the house). BONUS * Should I install 2 switches in a gang box or try to consolidate both switches into 1 in the junction box in the photo? Lastly, thanks in advance to all replies, I rarely post on any forums unless I'm really stuck...so thank you.

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