[QUOTE=Una Persson]
…I was told that it was a “code violation” by a know-it-all home improver to enclose wire in steel conduit all the way from the breaker box to the outlets. True, false, or 'depends"?
Seems to me like you would, in most circumstances, be adding safety. His judgment was that “if you have a break or short, it’s too hard to find it, and those steel pipes will heat up and set your whole wall on fire.” Bwah?
[/QUOTE]
I think Mr. Know-It-All took a steel pipe or two to the head. 
Code-wise, I grew up in Chicago, where at one point, even Class 2 stuff like telephone lines and doorbell wiring had to be in conduit, at least until it penetrated into a stud space - they weren’t allowing any visibly exposed wire of any kind back then. It took computers to get them to change their tune abour 25-30 years ago - businesses were leaving Chicago as it was otherwise too onerous to run the computer network cabling in conduit, and electricians knew nothing about network cables and damaged a whole lot of cable by manhandling it.
For retrofits, MC is great stuff. I’ve installed tons of it in spaces like garages where Romex is just too frail and susceptible to damage.
How many circuits are you planning to run? It may be more economical to install a sub-panel, rather than “home-run” a bunch of circuits to the main panel. You might also find that the existing main panel’s running low on both spaces to mount new breakers, and knockouts to accept new cables or conduits. A sub-panel just needs one two-pole breaker in the main panel (eg: 240 volt) to feed it, and one large knockout for its line.
You have the right idea about up-sizing wire, but 8 would be impossible to use with standard 15 or 20 amp receptacles. I don’t think you’d even be able to get #10 to work well, if at all. #12 will do well for either 15 or 20 amp circuits. As for the feed to the sub, I’m running #4 wire, and a 50-amp breaker. You can get away with #6 on 50 amps, but for the garage workshop, I’m running power tools with large start-up current draws.