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Thanks! The insulation seems mostly clean - I didn't really disturb it much to look at the back however. The front side looks clean though. I've attached a couple of photos of what I saw when I looked. Disregard the carpet color :)

Just a bit of background before I get into the potential issue. I live fairly far north and have a basement with concrete foundation walls (not block). In the winter, we can get air temps as low as -35C or so. The house was built in 1999, and the basement is currently framed, insulated and...