Just to give some background I have an old house that was very damp, and has been pretty much rebuilt.
Personally I wouldn’t worry about the breath-ability if wall is above two meters, as you won’t be pulling up water from the ground.
You need to first find out where the damp is coming from, as it won’t be due to the walls pulling up water that far.
So I would check the gutters are clear, fascia (if you have them) aren’t rotten and aren’t allowing water into the roof space and your roof is water tight (no broken slates/tiles).
If its all good, then the damp could be due to condensation.
If it is condensation you could seal the wall with a SBR and cement slurry then baton the wall out fit insulation then add insulating plasterboard that way the temperature difference shouldn’t be a problem.
If you are tight on space on the walls you could use SBR/cement slurry + limelight then normal multi finish but that will cost a lot more.
If you get someone in to advise and they suggest delta membrane get another opinion as they are just selling you something you don’t need or want.