I have a small unfinished wood frame garage built in the 30’s. I’m going to add insulation and drywall. The original wood siding is in good condition but there are dozens of nail size holes and cracks in the siding. During the day with the lights off, it reminds me of a planetarium. The contractor (my father-in-law) said I don’t need to worry about the holes because of the insulation. The HVAC guy also said not to worry about the holes because the old wood siding would absorb any moisture that gets in. Are these guys right? I don’t know much about insulation, but I’m thinking silicone or even tar paper between the studs? I live in a desert climate.