Wood on the inside of exterior walls.
If I plan to install shiplap on interior side of exterior walls and ceilings should I install a “smart” membrane on the studs prior to the shiplap or would I be better off with drywall behind to control air movement?
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In most climates, you would be even better off with OSB - to serve as a durable air barrier and somewhat smart vapor retarder.
A vapor retarder membrane is more susceptible to damage than drywall is, but otherwise either will work. You can use anything that will act as an air barrier, so a vapor retarder, drywall, plywood, etc. You need an air barrier because shiplap is like a tongue and groove ceiling with all the little gaps that leak. Just don't use something that is a full vapor barrier (like polyethylene sheet) here.
Bill