Wrapping is a bad idea as over time will degrade the exhaust and cost fueling issues
I get guys with Corvettes who contact me where their Corvette engine is running poorly
One reason is being talked into wrapping their exhaust system like the headers that developed cracked welds
which in newer Corvettes that have O2 Sensors those cracks cause air to be sucked in and that excess air affects
what the O2s report to the PCM which cause incorrect fuel AFR to be incorrect
Welds are thicker than the pipes are, wrapping causes in part different heat changes as the welds will get hotter than the thinner pipe does.
This causes different rate of contractions where pipe changes more than the thicker welds do
Mild steel will output more heat than if using stainless steel, so some wrapping maybe needed by starter or better is use a heat blanket for starter
Stainless steel has a memory, it wants to return to its original shape when made and that is flat
Wrapping then with the thicker weld when contracting as it cools will cause the welds to crack and pop off the piping.
Already mentioned is wrapping will cause rusting and looks like this
Wrapping causes welds to crack like this mild steel

As mentioned when vehicle has O2 sensors, they function depending on the exhaust gases temperature
Cracks allowing air in then fool the O2s and report the AFR incorrectly and the engines PCM then is reacting
causing it to command the fuel injectors incorrectly and engine ends up running too lean, causing engine knock and misfires
which PCM yanks timing and loss of torque.
May end up having to install larger fuel injectors to correct O2s lying about AFR due to those leaks
I would not wrap stainless steel and limit wrapping for mild steel
Also, suggestion is to make more torque gains is installing an X-Pipe right off the collectors as this will increase then exhaust pulses and help pull out exhaust of cylinders, so next firing of cylinder will be a cleaner charge and go with larger diameter of exhaust pipe,
Older C3 pipe is too small as apposed to my 1999 C5 I use 3 inches from collector all the way to muffler tips (3 inches inlet, outlets of mufflers)
Though that maybe too large for your engine but go a bit larger than what yours have
So in short, spend a bit more money for stainless steel for headers due to the amount of welds it has, and also it does not transmit heat out as much as mild steel and do not wrap them
If using mild steel, since they crack welds more than, try wrapping starter and using a heat reflector material under floor by center console
Install X-pipe off collectors
And best case if no fuel injectors then may have to adjust the carb or swap jets to adust the AFR