Our structure is built on concrete block, with the top of the block sitting about 16″ above grade and 12″ above the finished floor. A pressure-treated sill plate sits on top, with 2×6 framing above that. We are in climate zone 6A.

The exterior wall—including below grade—is covered with 2″ of rigid insulation (a mix of XPS and EPS). There’s also rigid insulation under the floor.

I’m planning to install batt insulation in the 2×6 wall cavities, but I’m unsure how to handle the exposed ~12″ of interior concrete block in terms of vapor barrier.

Can I run a continuous vapor barrier down the wall to the floor and seal it at the bottom with acoustic sealant? Or is a different approach recommended for this transition?

I plan to attach a horizontal plywood furring strip over the block to support vertical interior wood paneling and base trim.