Is it possible/recommended to use AFCI/GFCI breakers when replacing subpanel?
Go ahead with AFCI for the 15/20A circuits
As long as you don't have any shared neutral situations (look out for 14/3 or 12/3 cables entering the panel as you're wiring it), you shouldn't have any trouble putting your new 15A and 20A branch circuits on AFCIs.  I would familiarize yourself with the way Square-D does AFCI trip diagnostics at least, though, so that you can understand how to troubleshoot a case where one of your new AFCI's is tripping.
If you do find a shared neutral or Multi-Wire Branch Circuit, you'll need to use a two-pole AFCI for it, though.  This will also ensure that both hots wind up on opposite legs of the feed, preventing the neutral from becoming overloaded.
GFCI breakers aren't going to be useful for much, though
Since you have a 3-wire dryer feed and GFCI protection in most of the required places to begin with, you won't need GFCI breakers at all under the 2017 NEC, and will only need one for an air conditioner circuit (if present) under the 2020 NEC.  You may wish to use one if that's the easiest way to extend GFCI protection to the basement, though.