I know there’s quite a bit on this site regarding basement insulation, but I can’t seem to find anything that answers my specific question.   We just completed a mold remediation in the basement (and fixed all water source issues).  I’m trying to figure out the best way to insulate and prevent moisture/mold.  The cement foundation only goes halfway up the wall then it’s the wood wall cavities above grade.  The existing framing is still in place and about 1-2 inches away from the wall.   I have some installers telling me to do rigid foam with a 1 inch air gap and other installers tell me to do closed cell foam with wool batts in the cavities.   Is there ever a reason for an air gap for moisture reasons or should it always be flush against the wall?