It looks like the problem here is the "dimension" value of the pieces of wool cloth in your fort. For whatever reason, yours are all non-standard. A piece of cloth is required to have a dimension value of 10000 to be used, afaik. Yours have values like 6000 - 9000. Changing the item dimension to 10000 (using dfhack's 'gui/gm-editor' when the wool cloth item is selected) for any random piece of wool cloth enables it to be counted and used when manually creating an item in Cloth workshop (Add new task -> yarn -> make yarn robe -> details -> Specify cloth -> pick a wool ).
Your cloth:
(https://i.imgur.com/UZsTWn9.png)
Example cloth:
(https://i.imgur.com/wIMEvxx.png)
Experience wise, my guess here is it would seem very buggy. Items produced in the fort would likely be fine, traded / foreign / "acquired" items wouldn't. Again, no idea how you got here (raw changes, bugs, etc). If you're willing to give dfhack a try, you could probably ask one of the nice wizards in the dfhack thread for a way to change all your thread/cloth/bar sizes to the standard values (should work). Or you could start your own shearing/spinning industry (could work). Or you could just use another type of cloth (does work).