the lining paper is because some sections of some walls have had plaster removed, others have not. The lining paper is to even up the finish as some of the old plaster is imperfect.
The work is being done by a local building firm as part of an insurance claim, following a burst pipe in December, and they have specified lining paper (the walls previously had various heavy patterned, or painted textured papers, but I prefer a simple matt pale painted finish now).
I had not heard about not papering onto emulsion, when DIYing, I usually tidy up the walls smooth, and emulsion, and had always thought this gave a nice surface to paper on in future.