I agree with TomH

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There is no reason NOT to use the fiberglass insualtion if it has dried. And dried fiberglass insulation is not 'compromised' in its effectiveness in any way.

Mold, on the other hand, can be quite the issue and while there is no medical evidence of causation by mold of health problems in humans, panic has set in regarding mold and health issues making it a legal if not a medical issue.

That said, there is NO reason at this point your contractor should do anything. If you want to take tomh's hygrometer test to another extreme, hire and pay for a mold expert to come in and evaluate your insulation for mold....but be prepared for a huge can of worms, some substantiated, some not, if you do.

And remember, there is hardly any house that has ever been built that hasn't gotten wet if not completely soaked during the building process and most with no problems at all.

If it werw MY house, I would simply make sure the insulation was dry before drywalling and be done with it.