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Insulating 1915 Craftsman- Original Siding

I have a 1915 Craftsman in coastal Southern California and have just removed all the interior plaster/lathe. I would like to insulate but I am not sure what are the proper steps, if any to address moisture issues. The siding is the original cedar shiplap and shows some water stains on the inside. I have completely stripped the exterior paint and have repainted. If I just put in fiberglass bats will I have mold issues?

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