@hylianengineer sorry I had to make a new post, the answer got too long for replies :D
Ah, the dreaded "but wool is itchy!". Not something I can relate to (I really like it when yarn/fabric has a bit of grip and structure to it, I'm not one for the ultra-soft, fluffy wools) but let's see if I can say smth useful.
First, you're definitely not alone in finding wool scratchy! A lot of people have sensory issues regarding it. Whether it can be helped at all will depend on how sensitive you are; some people can't even handle unspun 17 mic chubut merino and at that point, wool just isn't for them. Which is fine, not everything is for everyone.
Rule of thumb: the higher quality your fibre, the softer the finished garment will be. If it's just listed as "wool", it might contain recycled fibre, wool from sheep breeds that don't have a super fine fleece, or even wool from dead animals, all of which lowers the quality.
Virgin wool (I think) refers to wool that is spun for the first time, so a yarn that has no recycled fibres in it. Lambswool is a sheep's first wool. It is finer and smoother than adult wool.
Another big impact is breed of sheep and origin of the fibre. Merinos are the go-to for high quality items, but are also kept all over the world, so look to where your wool comes from. Aotearoa and South America are well known for their high quality merino wools. Sheep that live in colder, harsher climates produce a sturdy, tougher fleece, especially if they're not merino breeds. Depending on where you are, regional wool might not be what you're looking for. Britain is famous for their wool, but Shetland wool won't be super soft. Try some BFL (Bluefaced Leicester) if you can get it; it is smoother than merino and not as springy.
Wool can be superwash treated by coating the individual fibres, so the scales on the hairs are covered. This means it won't felt and can be machine washed; it also makes it less scratchy. This process is very energy- and water-intensive. The fibres are coated in silicone, I think, which makes the finished yarn feel kinda plastic-y, and it also lowers the insulating and water-repelling qualities of the wool. (All in all, you might as well buy acrylic)
You can also try looking for sheep's wool mixed with other animal fibres. Cashmere, alpaca, and mohair are probably the most common and all have their own qualities (cashmere is shiny and drapey; alpaca is smooth and kind of dense; mohair is light, extremely fluffy and super warm). All are softer than sheep's wool and nicer to the skin.
Anyway, all that to say: Look for virgin wool, look at the breed you're getting if it's specified, look for mixes with softer fibres, look at the origin of the wool. Unfortunately, when you're sensitive, navigating the world of natural fibres can be a bit of a minefield, I know. If wool isn't for you, that's not a moral failing!
