The
vb is apparently still a Canadian code thing, and its function is to prevent vapor from getting to cold wood. Ideally, it should encase your house in a continuous layer; hermetically sealed, as it were. It is an awkward piece of doggy droppings to install sometimes, as choices have to be made, as you noted. I don't think it matters where it goes (of your two options) as long as you don't have a break in it where moisture can hit cold wood. Where two pieces meet, staple them down nice and snug, then tape them w/ tape made JUST FOR POLYETHYLENE. It won't hurt a bit to use something like Tremco acoustical sealant between each piece where they join before you tape, either. NOW, whether or not you need one, or whether or not it is even helpful, is a matter of debate. And, if you use a
vb, do your best to air seal at any and all penetrations thereof. Air conditioning can cause problems w/
vb's, too.