Drywall over old wall material
When you do take off the existing do one wall at a time & place 6 mil poly stapling it up in sections and working with the blown that way. It will be less of a problem it should only be in the exterior walls at any rate. You need the vapor barrier in those locations anyway,(unless you're in the deep south then use landscape cloth). It's the interior walls that really need to breath, the exterior you want to protect from the flucuations in temperature creating moisture at the dew point.
See if you can get into the attic and move the blown from the ceiling, you can put it back when you're done. Wear a good respirator up there. That needs a vapor barrier as well.
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