Looks ready for drywall to me. Watch a few videos and good luck.

As fiberglass behind poly is a diaper in waiting, if it were my house, I'd rip it off and insulate properly. But it's Code compliant.

Thanks - what is the right way of insulation? Or the fiberglass is a wrong materials used here?

What individuals are advising here is the best/correct building techniques. You must decide risks you will take and time/budget constraints for yourself.

To begin, concrete is porous. Therefore your best approach is to prevent moisture/condensation AT the foundation. This is the caution from @worthy where the fiberglass will absorb moisture and it cannot pass thru into the basement. Long term you will likely have mold and musty odor behind the drywall.

At minimum kraft backed fiberglass should replace what is installed. Best would be remove the studs, place XPS foamboard against the foundation, tape the seams then reframe the walls. Doing this will provide the best long-term build and greatest comfort.

Plan to keep humidity at 45% or less. Have return air and heat vents installed appropriately. Plan electricity and other utilities to be installed before drywall.

Good luck.