There are machine-able forms of carbon fiber. Most forms are basically fiber reinforced resin solids.
It has its own challenges and hazards when it comes to machining. Whether managing harmful dust compares to dealing with the physical properties of titanium, I don’t really know.
I just doubt that choosing CF over Al, Ti or
even polycarbonate would yield a yo-yo that has any distinct advantage. There aren’t any of the unique load bearing requirements etc. that make CF an attractive alternative in other applications.
A part of me wants to do an economics 101 lecture on this topic but it’s not worth the word spaghetti no one wants to read.
TLDR version. Yoyo is small market. Carbon fiber is expensive and hard to work with. Unless someone has a passion project they want to throw away money at it’s not a viable material to make what in the end is a toy out of. Similar issue with the super cool concept yo-yos like the gemstone and unicorn and yofo and many others lots of unique parts and manufacturing steps that make the yoyo something to make in small quantities. It’s also why we don’t have a bunch of mass produced wood yo-yos because the labor at scale breaks any concept of an ROI.
Don’t get me wrong I love the unique and fun concept yo-yos and wood throws. I want more of them but realistically they aren’t a scalable thing unless you can be unique enough to make your own category and own it.