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Stucco is installed over rigid insulation, which is installed over a drainage plane consisting of a drainage gap and building wrap layer over the sheathing
The builder in this very cold climate installed three layers of unfaced mineral wool batt in the double wall with a code-required vapor barrier between the middle and inner layers of wall insulation that is taped to barriers in the ceiling and floor.
The Perfect Wall includes water, air, thermal, and vapor layers with continuous insulation exterior of the sheathing to reduce the condensation potential in the wall.
This farmhouse was retrofit by removing the existing siding and adding taped insulated sheathing and battens before installing new siding