Permanent Wood Foundations Brian,
You hit the nail on the head.
Most of the similar construction we have discussed here had a bad mold problem behind the FRP curtain insulation that I witnesssed.
One home literally had it's PT wall board almost down to wet cardboard consistency from foundation water.
In all cases, I made the problems known to the homeowner. That's just me. I suppose this would make a good ethics topic on another thread.