The scroll of the thread was the Controlling Thread, a Magic Artifact that he had obtained from the system for the first time when he was newly reincarnated.
The Control Thread was useful for controlling objects such as puppets, and he was going to use it now as a weapon against Jiu Ouyang.
When he tried to fight the giant golem, the first thing he destroyed was because he was trying to test Jiu Ouyang's soul power.
With Jiu Ouyang's soul power, perhaps controlling dozens of giant golems was not a problem. Still, if Jiu Ouyang met a cultivator who had soul power greater than himself, then there was only one choice, he would lose.
Thanks to his Soul Destroying Fighting Art, Xu Yuan had stronger Soul power than ordinary cultivators.
To gain a lot of soul power, a cultivator needed skills that matched the cultivator's and needed to do soul training in the form of mental challenges or something.