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Interesting! I'm keen to follow how you get on.
When my house is mouldy in space-year 2030 I'll post pix for you and @Howard
Wood fibre insulation has been used in Germany for years, most of the companies making it are German.
Dry processed boards are a newer thing but wet processed boards have been around for decades. Wood is a great natural insulator, not just for thermal insulation but also for sound (another reason it appeals to me!).
https://www.youtube.com/watch?v=qpFNArhll1w&ab_channel=BacktoEarth