Keep my garage moisture free

Roxul makes exterior insulation panels used in commercial construction that comes in 4'x8' sheets. Would be easier to hang than the 14.5x48 peices made to go in wall cavities. Drawback is that big box stores don't carry it, you'll have to order and may have to go through a dealer/distributor to get it.
I believe Roxul is the brand of rock wool insulation I used. 10yrs ago, it was not well known in the PNW, not sold by Lowes, or Home Despot. I had to go thru a local DIY chain, and special order it. It was a little more expensive, but I thought it was well worth it. It came in different widths, and thicknesses then, and I wouldn't be surprised if it has many more custom applications, now. I used unfaced batts in floor, ceilings, and walls. But I used HD plastic sheeting as vapor barrier over insulation and studs, and beneath sheetrock, with a well ventilated attic. If your furred-out interior wall is just for holding up insulation, and drywall I wouldn't be too worried about structural issues. I mean it's not carrying the roof span load.
An added benefit of insulating the walls that we haven't talked about is noise reduction.