When there's no insulation the furring & lath stayed pretty much at room temp, and was inherently always above the dew point of the interior air. Stripping the old furring and setting it up just as dimmi's wall using rigid foam would be fine. How thick you go depends on your budget for foam & Tapcons. (The fasteners start to add up when you're looking at 7" screw or something. ) If you can find a local source for recycled roofing foam it gets to be pretty reasonable to go with 3"-3.5" of iso (R18-R22), and 5" screws. (I did my basement this way using scavenged 3" fiber-faced iso @ $20/sheet for 4x8s.) With a solid concrete wall there's no getting around using a hammer-drill/roto-hammer.
You also need to figure out how you're going to extend the window framing and electrical drops, etc in when going thicker. Be sure to make it air tight using low-expansion foam too- you don't want room air getting between the foam & wall and condensing there if you don't have to. Even though the concrete can handle the moisture, the subfloors & joists won't necessarily. The embedded studs in the concrete will be colder and more susceptible too, but it's primarily air-leaks not vapor diffusion that would cause a problem. In fact, using only relatively vapor-open foam is probably the right way to go- no more than 2" if XPS, 4" of EPS or fiber-faced iso, and definitely not foil-faced goods. (As a sanity check, fiber faced iso is usually somewhat more vapor permeable than the kraft facers on batts.) Air tight with sealed seams & edges is key. In the summer there could be fairly high moisture drives from the exterior from solar-heated damp concrete- you HAVE to let that moisture come through the finish wall, at least a little bit, to help keep those concrete-clad studs dry & happy.
Dimmi- as long as you seal the joints with foam or tape it's not a big deal to use squared edged goods.
You also need to figure out how you're going to extend the window framing and electrical drops, etc in when going thicker. Be sure to make it air tight using low-expansion foam too- you don't want room air getting between the foam & wall and condensing there if you don't have to. Even though the concrete can handle the moisture, the subfloors & joists won't necessarily. The embedded studs in the concrete will be colder and more susceptible too, but it's primarily air-leaks not vapor diffusion that would cause a problem. In fact, using only relatively vapor-open foam is probably the right way to go- no more than 2" if XPS, 4" of EPS or fiber-faced iso, and definitely not foil-faced goods. (As a sanity check, fiber faced iso is usually somewhat more vapor permeable than the kraft facers on batts.) Air tight with sealed seams & edges is key. In the summer there could be fairly high moisture drives from the exterior from solar-heated damp concrete- you HAVE to let that moisture come through the finish wall, at least a little bit, to help keep those concrete-clad studs dry & happy.
Dimmi- as long as you seal the joints with foam or tape it's not a big deal to use squared edged goods.