Too many unanswered questions…but a few observations:
1. An unheated basement may qualify as ‘conditioned space’ and may be required to be finished as your State Code requires.
2. Claiming you live in a rural area does not necessarily disqualify you from conforming to your State sanctioned building codes since most US States have Statewide building codes nowadays regardless of how they are locally enforced.
3. Generally speaking, polyethylene plastic sheets should never be used in the framed walls of a basment.
4. Anytime kraft paper faced insulation is used it MUST be covered by gypsum drywall or similar because it is a fire hazard.
5. Open ‘backside’ open walls of non-combustable framing still need to be enclosed for fireblocking reasons.
6. Fire and Draft-blocking reauirements still apply.