The only thing that comes to mind is a wallpaper razor scraper. It will make a mess of the wall, but that can be repaired.
I doubt that you could easily cover it all with drywall because it is probably too rough. You could scrape it off reasonably smooth and then drywall over with 1/4" drywall.
I discuss drywall and drywall patching on my website at www.bobf.info.
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