I'll take tips on better options, but this is how builders build new around here in climate zone 7/8 circa 6 years ago. I've got one of these walls open right now and the only evidence of water is ice on the exterior concrete wall above the ground level which is expected around here. The wood isn't going to rot because it can still breathe to the exterior through the top.

Run poly from the floor to dirt level on the concrete wall, seal it to the floor, build a 2x4 stick wall, insulate with fibreglass then run poly from floor to ceiling on the interior. Drywall unnecessary but now you are ready for it.