He just wants to insulate his shed a bit woody he's not building a house.

Me too.
It may be better to post a photo of the frame, to show what going on there.

Oh, it's what my local supplier calls a "log cabin"
Each of the wide planks has a large notch near the end, so the transverse and longitudinal planks are laid alternately, and interlock at the notches.
In US, the timbers sometimes also have a tongue and groove, so each locks into the one above and below. This also prevents draughts.
I think external cladding would spoil the intended appearance.

Yes. Words matter
Do as you propose in the OP.
Bear in mind that insulation wont magically make an unheated room warm, and the air leakage from that room will be off the scale.
You are unlikely to get much benefit from anything more than a token 25-50mm of insulation, and be mindful of spending too much and getting no return

Why do you need it heated? Whats the heat source?

If going the Kingspan route I would fit the foil face facing inwards, then the breather membrane on the face of the insulation then your vertical battens.
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