I have no experience with what you are talking about, but I would think it would be labor intensive (and next to impossible) to perform the theoretical performance of such product.

Get air conditioning. Moisture is your home’s enemy. Not addressing that issue will cause far worse problems than using standard batts.

Kudos to you for raising the question before you build rather than after you have a problem. I recommend you consult with a local building science expert to help evaluate the cost/benefits/drawbacks of various alternative insulation strategies in your specific climate zone.

Mark Bischak, Architect - ComfortTherm is one of the products I'm considering. https://www.jm.com/en/building-insulation/residential/fiberglass/comforttherm/

Supposedly it comes with vapor barrier wrap for colder climates and non-vapor barrier wrap for hot, humid ones. I assume the non-vapor barrier wrap is perforated. It seems to me that if the wrap is perforated then if moisture gets inside, it will not easily get back out so having it solid may be preferable.

We are semi-off grid so are unable to meet the power demands of an air conditioner. We do run fans to keep air circulating which helps tremendously, but we still get some condensation (and mold growth) on uninsulated walls along the bottom of the plywood sheathing. All seams have been caulked with foam, so this is not due to air infiltration but rather the result of the wall being so much colder than the ambient temperature and the moisture being in the air as a by product of the propane heater. I'm hoping that putting insulation in between the studs will fix this problems as it will address the temperature differential.

Clarify NC location please.

Also are you completely wrapped in trees?

Being off grid and having a/c is not a problem at all in well done modern house. And when you describe location as "humid", that isn't really describing 6,000 ft elevation which is where no a/c makes sense.

I am not off grid but have a HERS rating of less than zero. That means, with batteries I could be off grid. A/C doesn't require batteries most of the time. The summer's abundant sun handles a/c just fine with relatively few solar panels. And if you are off grid, then I am assuming you have solar.

The problem with solar nearly everywhere in NC is the heating season but you have that planned.

Back to question - nice in theory but so horrible for thermal insulation that you should avoid it. Bats are already terrible and this makes them worse. It isn't just windows, it is wires/outlets/fixtures, plumbing, corners, framing supports. Get some external rigid foam. Super DIY friendly. No fibers and wickedly more effective.

Do you have codes to worry about?

What kind of performance are you looking for - ie is this a year round residence? Do you have unlimited wood and unlimited energy to gather it and cut it?

I can't answer your question about insulation, but I have a few thoughts.

First, bravo for your independence in being even partly off-grid.

Second, don't let people push you into air conditioning you don't need or want. People lived without air conditioning for generations, including in the South. (Of course, they also lived without indoor flush toilets for generations, but let's not quibble. :)

Much depends on your house and the setting. Modern houses try to resist their environments. Old houses were instead designed to complement and manage their environments, handling summer heat and humidity naturally. Porches were for sitting, and even for sleeping. Close-in deciduous trees provided shade in summer and allowed solar gain in winter. Windows were placed to capture breezes. Live Wire's comments on insulation and construction are right on target.

Third, if you decide to tighten up and insulate your house, making it more like a modern house, you might consider installing mini-split heat pumps. They're ideal for your climate, and can be RE-friendly if you have, or can add, enough PV capacity. You get efficient and clean winter heating - much cleaner than wood heating, which has high particulate emissions - and the summer air conditioning is a free bonus.

Ever consider cellulose? Responds better to humidity, better R-value than fiberglass. Just get the borate treated (no aluminum sulfate)..

https://makinghouseswork.cchrc.org/2014/moisture-performance-of-cellulose-insulation/

My one concern would be the recommended location for the vapor barrier. Here in Michigan the rule of thumb is to place the vapor barrier on the warm side of the wall; which I still can't understand because here that changes seasonally to the extreme.

Does "HERS rating of less than zero" mean the wife doesn't like it?

My husband and I have been doing a ton of research while designing our future home in Northern Wisconsin. He has worked in remodeling and construction with exposure to many aspects.

The article that "badabig2" refers to is spot on with the best practice advice we have found. That said, the climate zone you live is is a lot different than Alaska or even Wisconsin (zone 6). Go on line and get more specific for your zone.

As far as using the poly encapsulated fiberglass, it has a very specific purpose. Check with the manufacture and your local building department and experts before you proceed.

Air sealing the entire exterior envelope is more important in any climate to minimize the air infiltration into the insulation. Second to that is that the bats be carefully installed to eliminate any voids and gaps while avoiding compressing the bats and reducing their R value.

We have concluded that we will have dense packed cellulose in our walls and blown cellulose in the ceilings which gets more uniform fill. We will install moisture permeable vapor barriers to the interior and exterior to allow the walls to move moisture both directions, NO POLY.

Thank you for your comments and advise. You've given me some good information to consider.

You need to be concerned about the design of your wall assembly including the R-value of the insulation, air sealing, the choice and location of a vapor retarder, the choice of and the design details for the weather-resistive barrier and the exterior cladding. A local building scientist will know what works in your climate zone, and what is available from local suppliers and contractors versus more "exotic" options.

I would be concerned about the air quality implications of using a direct-fired propane heater---particularly as your home gets tighter. That includes the potential for condensation in the wall cavities as well as the level of by-products of combustion you'll be breathing.

"I would be concerned about the air quality implications of using a direct-fired propane heater"

That's something I intended to mention, but forgot to. Unvented heaters of any kind are bad news. Their only merit is that they're cheap. A direct vented heater is more expensive, but an order of magnitude safer.

In my opinion, building codes should prohibit unvented heaters of any kind in structures meant for human habitation.

I'll go so far as to say I personally prefer electric ranges over gas, for the same reason. A gas range with all 4 burners and its oven lit is consuming 44,000 BTU/hr. That's more than a 50 gallon gas water heater! Nobody sane would use a gas water heater without connecting it to a flue, but the same people will use their ranges to prepare Easter dinners tomorrow, and not give a thought to all the products of combustion they're breathing.