Blown in fiberglass in rim joists

1920's home in the northeast

I was initially planning to do closed cell or open cell foam insulation for my rim joist in the basement. However after an evaluation and seeing there are many areas which are not accessible my contractor said he will have to do demolition for foam insulation and instead suggested blown in fiberglass. I know fiberglass batts in general aren't recommended for rim joists anymore but how about blown-in fiberglass

Also, I am planning to do some waterproofing work from the outside rather they will dig in to the foundation and put gravel. Would it make sense to do insulation from the outside during this exercise


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(I'll let others answer your insulation question)