Most likely, the program you saw had an element of simulation. I've never seen cellulose that wet. It would surely blow out the wall long before the paint peeled.
But the important lesson to learn is that nasty sources of water vapor and pressure should be fixed before insulating. One common problem that could lead to paint failures is a furnace fitted with leaky ducts and a central humidifier. This really blows a lot of water into the framing. Insulation in these extreme examples is not much of a factor.