When you open the walls by removing the drywall make sure there is an inch space between the 2x4 framing and the block wall. If the walls are dry and you have this space just insulate with R13 with the vapor barrier on the inside of the wall. If the walls are wet you will need to stop the leaking. If you have no air space I would re frame it. You want the space to allow the walls to breath and not allow your insulation to soak up moisture throw the block.
Hopefully there is a space it will save you allot of work.
Have fun.
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