Electrically it doesn't matter. One kind of wire is as good as another.
Cloth wire is more traditional. I was also pleasantly surprised when I first used it at how nice it was to solder. The wire is generally tinned, and rather than stripping the ends, you can pull the insulation back a little to expose the end. I have continued to use it, particularly on simple wiring harnesses where I am happy using just black and white wire.
What I like about plastic insulation is the price (I generally just repurpose it from old computer cables), and the colors. If the wiring harness is complex I draw it out with as many different colors as I need to keep it straight. Gauge doesn't matter since the current these wires carry is so minimal.
You can get cloth wiring in colors too, but it gets pricey, and it does not have much benefit other than the look and feel.
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