Use a single electric winch, continue to use rope, even 1/4 braided rope. Separate the pulley blocks
Have 2 lines winding on the electric winch.
For each side, first pulley runs direct forward of the winch out aways. they will align rope with winch drum.
Second pulley directs rope down to dinghy hoist attachment on boat.
Each pull up side still uses 2 pulleys, so still 4 pulleys are in use.
You could use SS rope, but not needed. They weight is small, SS rope maybe it will eventually fraz and cut your hands.
You could even use a hand capstan sailing winch and do the same idea. I would want one winch to lift the boat, not two. Even a trailer winch would work.