Laundry room remodel

Hi and thanks for tips. I live in a quad and laundry room is on level where exterior wall is 4ft cinder block and rest wood framing. I gutted walls so I could insulate since this level of house is cold and drafty. The top portion has R-11 and the block portion had nothing. The top is 2x4 and the bottom was 2x2 directly against blocks. I ended up taking the framing out as there was a lot of dry rot in corner. I corrected water issue outside and most of this looks like an old problem. There is some separation between the poured floor and blocks. I will be filling that.

I intend to reframe w 2x4 top and bottom and add insulation floor to ceiling.

My questions - should I reseal the cinder locks? If so- what products have you found work best? Drylok?

Vapor barrier against the cinder block?

Thanks again.