@ponch "My approach was what I thought I remember being the "right" way to finish basements years ago." So much of the advice available is a carry-over from long ago. If the gap is between an insulated stud wall and a cold concrete wall (usually mostly below grade) then the air circulation acts as a conveyor to move the moisture (humid air) from the lower areas up to where the blocks are colder and the moisture is deposited. The most popular solution is to install a sufficiently thick layer of rigid insulation, then batts to bring the r-value up to code, then the drywall.
Getting to jl's question as well, do you add a vapor barrier before the drywall? In a basement application I do not recommend an inside vapor barrier as it is difficult for the wall to dry to the outside. The only path is up and out the exposed foundation. Even with 2" of rigid insulation, a vapor retarder and not a vapor barrier, a basement wall will be able to dry to the inside. With this application being all above ground, the wall cavity could dry to the outside. Adding the vapor barrier would depend upon that moisture generated on the inside which wasn't stated. If there is no significant moisture being introduced, then omitting the VB would be fine. If the humidity is going to be high, I would want to prevent that moisture from entering the wall, and if any enters from the outside it can exit the same way. The amount that passes though 2" of rigid is very small, but does not constitute a double vapor barrier.