There is no problem placing insulation around NM.
Modern NM has 90 C isulation at which 14, 12, and 10 are rated at 25, 30, and 40 Amps; and those ratings are based on 3 current-carrying conductors. However, the NEC limits the use of 14, 12, and 10 to 15, 20, and 30 Amps. The heating for the permitted amps is 36%, 44%, and 56% of the 90 C ratings.
The large margin of safety means the insulation won't be a problem.





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