Wall Insulation on Stone House

[cwyIII]

We are renovating a stone cottage built around 1938. The original interior walls are a Homasote type fibrous material. The stone is about 6 inches thick. It is faced with wood planking that is in excellent condition. We’ve been doing a lot of research about insulating the walls before sheetrocking, and most seem to say that it is a bad idea and that it will encourage the growth of mold on the wood. Information from the UK seems to say it's possible with a vapor permeable barrier. However, the descriptions of existing structure do not seem to be exactly what we have…..so I am hoping for more opinions on our specific case.