R,
I used to test and repair all winches in Army service. They had an annual requirement to have the cut outs and warnings checked as well as rope condition, etc. This covered all sorts of vehicles, Bedfords, AEC, Scammell, Foden, Leyland, dozers and loading shovels, recovery vehicles, armour, etc.
I once saw a rope that had broken on an AEC Mk1 Militant GS, whilst being tested by someone else, it broke at rear of lorry and ended up in a tree, the other side of the anchor block. This was the hemp core type rope. Later on the ropes on some vehicles were of a different construction and were said to drop down if they broke................not always, witnessed this as well. Despite very careful inspections, the rope can have been strained in the past and the damage not visible. We were having to load to the cut out, but theoretically, the SWL of the rope was double that. I am not sure a blanket or canvas would have much effect on a heavy rope, it goes so fast you have little warning. Just keep well clear. An operator should work out the load required to execute the task and never get up to the cut out load. You would not want to be pulling something up a bank only to cut out and have to let it back down again on the brake. The cut out is a safeguard. Some of heaviest winches were CAT D6 and Foden Recovery, the Foden could be done using the remote control well away from the vehicle, CAT not so good as there is only a sheet of glass between you and the winch. The cut outs were very often not correct or not working so it was a neccessary task.
Gloves.........if you slide your hand up a rope and there is a broken strand, it can slice open your finger or hand, much better to catch in the leather glove, as for getting caught in the winch, there is no need to be that close to the drum to guide it in.