Yes, but - When insulating on top of existing insulation we recommend the use of unfaced insulation so no vapor retarder will be on top of the original insulation. We also do not recommend adding a separate vapor barrier on top of existing insulation. With that in mind, the approach you describe should also work because a vapor retarder can be anywhere up to one-third of the total thermal resistance in the assembly starting from the warm side.
Two-and-a-half inches of wood chips will provide R 4, at best, and one-third of R-40 is R-12. The vapor retarder can go in as far as R-12 in the assembly you describe, so in this case it is OK. More.
I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.