I have seen it done both ways. I asked, and was told; drywall before stucco prevents movement/stucco cracking.

Before I asked the workers, a neighbor and I were talking, the neighbor said, “maybe the drywall guys were available now and would not be later.” I.e., subcontractor scheduling.

Drywall nailed before first coat of stucco, but it is lathed and weather tight.

Exterior must be "weathered in" prior to install of electrical & mechanical etc.

For stucco, that is lath should completed (windows, doors).

Most building departments enforce this IF they are inspecting during these sequences but some departments no longer do this.

Understand that drywall is stacked in the house prior to install, and the weight is redistributed during drywall hanging, potentially creating minor settling and stresses on the structure.

How can electrical, plumbing and HVAC be installed before exterior shell is weather tight?

These systems must be installed before the gypsum board is applied.

How can electrical, plumbing and HVAC be installed before exterior shell is weather tight?

As soon as the house is sheathed, roofed and doors and windows are on, I've started those services. (I've never used stucco, real or EIFS.)

Do you use Tyvek or similar on the exterior sheathing before beginning interior work?

I have long preferred to live and work in air conditioned space. And a near-by toilet is a blessing.

Do you use Tyvek or similar on the exterior sheathing before beginning interior work?

I try to. But HVAC and plumbing are little affected by bit of water. I've never taken more than 6-8 mos. from demo to occupation.

The key is to always keep moving forward. I once spent a couple days with the biggest homebuilder in Ontario. (His father was one of the largest landowners in the Toronto suburbs, which helped!) Pushing and prodding suppliers and subs, racing from subdivision to subdivision occupied most of his time.

Local practices usually prevail over code. Snow is usually not an issue with exterior walls, but rain is our local concern, especially if upper levels are "offset" from lower levels, giving rain lots of opportunities to infiltrate at wall to roof connections until the walls are weather tight.

The concern probably stems from the days when drywall was installed with nails.

if upper levels are "offset" from lower levels, giving rain lots of opportunities to infiltrate at wall to roof connections

Absolutely! (Thanks for reviving that memory.)

RES.....do they only use screws these days? Is that code in all states or just a few?

Code adopts manufacturer's installation instructions. Nails and/or screws are typical. When using screws, installers start the panel with nails.

Back to the original question: Some jurisdictions require drywall "nail inspection" checking fastener spacing prior to releasing home for first coat of stucco.