That you do not use a vapor barrier over the walls covering the concrete, but you could over the above grade walls if they are framed, not concrete. I lived in WI for many years (Wausau) and did what you have described without the vapor barrier, and never had any problems. Leaving the vapor barrier off allows the wall to breathe both in summer and winter. I would use styrofoam/styrene rather than fiberglass to minimize the possibility of moisture being absorbed.
A good site to check out is: