I would just pull it out and drywall. There is no easy/good solution.

I agree with Rockin, painted panelling can look great, done properly .. and it's far less trouble to paint than it is to rip out and start from scratch. I'd dry wall over it before I'd pull it all out.

Are you dealing with paneling or tongue and groove authentic panels? That makes a huge difference. If it is the stuff from the 60's and 70's, do what Brenda suggests and get rid of it. Bad then, worse now.

I like the look of painted paneling, but removing it would also be an excellent option since you already have a textured wallcovering on another wall. The two textures might be too much.
Carolyn Albert-Kincl, ASID

I'm painting mine. There's no pulling it own in our vacation home since it's a kit home from the 60s. That's all the walls are is the lapped - board panels that are arranged using tracks mounted in the ceiling. The wood is covering real easily using valspar latex with the primer. I have yet to fully understand the appeal of drywall. we also live in a log home and it's amazing how many log home owners cover their walls in drywall. When we first bought our cabin a fried of ours told us to immediately drywall the walls. The entire look would have been changed and it would no longer feel like a vacation home and would have turned I to a regular subdivision - style home. I have photos of its current state prior to what I'm doing to it posted on my profile page here.

This is from May 2013. If you're new to Houzz, be sure and check the date of threads as the key word generator pulls up old threads based on what you're reading. They're displayed on the right hand side of the page under Related Discussions. Most are long dead with the OP nowhere in site.

https://www.houzz.com/photos/south-carolina-cottage-traditional-porch-detroit-phvw-vp~4850061 This front porch is similar to what we are talking about doing over both doors. We'd have to tie it into the valley on the north side.