Interesting project. As I'm just a hobbyist, there might be be better solutions and thoughts, but that's what I know:
First: I assume, in case of yarn breakage you will have to stop the machine and some human will have to fix the problem - so some kind of lokalization of the breakage would be sufficient? => Put an array of hall sensors to be easily checked with one view in parallel and use hall sensors that will be switched on in case of breakage. This reduces the amount of PINs or other detectors needed.
As I'm not familiar with the mentioned D2401: Just order some of them for testing... Don't know how fast they are, but wrt. to 1-wire Temp sensors I know 1-wire is at least capable for some dozents of them on one bus. Several buses in parallel are posible, bt then memory might become an issue.
You may also have a look at port extenders like the MCP23017: this gives you more PINs over a simple I2C connection, several of them may be used on one arduino (no experience with that). They offer interrupts also afaik - if speed in reaction is needed. Most likely you might need a more powerfull mcu - then have a look at the STM32's (but avoid blue pill in favour of maple mini-compatible solutions).