They did install multifuel engines in the 5 ton trucks for awhile, my M51a2 dump truck has that engine in it. It's a more powerful version of the engine that went in the 2.5 ton deuce. 135hp 330ft/lbs torque in the LDT multifuel deuce, 180hp roughly 400ft/lbs torque LDS multifuel in the 5 ton.
Each of the trucks has their benefits.
M35a2 Deuce-Multifuel, manual transmission, roughly 14k pound weight, big truck but not huge and does fit into a normal parking lot space. Driveline parts are not as heavy so it's easier to work on. Downsides are manual steering, parts availability for the engine/transmission (have to be shipped), and the single circuit hydraulic brakes.
5 tons
M39 series (M51, 52, 54...)-The A0's were gas, A1's have a Mack diesel, A2's multifuel. 5 speed manual, lightest of the 5 tons. Can either go with bigger tires for faster speeds or swap the transfercase Downsides are the single circuit hydraulic brakes and they are harder to find.
M809 series-Cummins NHC250 engine, manual trans. Parts for everything with the drivetrain is readily available. Same bigger tires or swap tcase for higher speeds Downsides are the same hydraulic brakes and fuel economy. That 14L motor will vary from 3.5 to 8mpg but most get 5-6mpg.
M939 series-NHC250 or Cummins 8.3L engine, auto trans, air brakes, CTIS on the A2 models (push button tire inflation/deflation). The cab is already insulated and wider, brakes have a backup system, entire hood and fenders tilt forward for easier engine work. Largest engine bay. Parts are available over the counter for the drivetrain. the A2's get similar fuel economy to the Deuce. Downsides are the CTIS system, cost of fixing the transmission, wedge air brakes. These trucks have a body lift for the cab from the factory so they sit higher.
Considering that you like the upgrades that a 5 ton has and want a multifuel, I'd look for a M39 series 5 ton. Has the multifuel, the brakes can be upgraded (for a backup system).
Couple updates on the wrecker. For the first time in at least 3 years it has now driven on the highway! After servicing all the axle hubs and replacing the brake master cylinder it went for a road trip to be closer to home. Cruised at 55mph without issue on the highway (2000rpm).