Enough of COVID...what are you doing to the house?

Best way to insulate / hide this exposed wall? Kevin did some repairs and I haven’t seen any water / moisture since we moved in but if we’re updating the laundry the exposed wall is the first thing to be done.

View attachment 77549

Thinking of gluing 1” rigid foam panels and in between them have a 2x4 for strapping of the drywall.

Not much space so I don’t want to build a full 2x4 frame or insulation with Batt.
I went with tar paper, 2 X 4s, fiberglass, vapour barrier and drywall but space wasn't critical. Similarly in the garage, but 2 X 2 and plywood for the bottom 24" and diagonal reject cedar paneling above. Man cave wainscoting.
 
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