If you use a vapor retarder/barrier sheet goods on the concrete, it could condense moisture from the basement air and mold the wood framing. If you don't put anything on the concrete wall, it will condense basement moisture. The best retarder is rigid foamboard, as said already, it won't mind being wet next to the concrete, long as it is air-tight from basement air. You can add an insulated (R-13) wood frame wall in front without worry of condensation if the foam is thick enough. At 68*F room air; 1" XPS and R-13 cavity= safe at/below 29%Relative Humidity above grade and 3' below grade (your frost depth). 1-1/2" XPS = 34%RH 2"XPS = 38%RH
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17,000 dryer fires a year, when did you last clean the inside of the dryer near motor or the exhaust ducting?