Question for houzzer’s
I have an old house than needs insulation in the exterior walls. The wall construction has no sheathing (except for decaying building paper) between the wood siding and studs.
The wood siding is nailed directly to the studs. Attached is a simple drawing of the exterior wall construction.

I thought of filling the stud gap between the siding and drywall with injected closed cell spray foam insulation. I spoke with a local company that does this and they said they could do it with no problem. I have read online some articles stating that doing this could cause a problem with moisture/condensation/evaporation issues that lead to the wood siding dry rot and exterior paint to peeling. One manufacturer of the foam agreed – don’t do it. Another manufacturer said go ahead, there will be no condensation/rot/peeling paint issues with closed cell foam.

Houzzer’s have any of you already done this type of insulation on similar type wall construction? If so, how long ago did you have it done and have you had/seen any moisture/siding issues develop? Thanks to all for your comments on this.