Updating garage walls : HomeImprovement

We just moved into a lovely home and I am looking to undertake my first relatively larger project as a homeowner. Our garage is lined with aging panels of what I think is a kind of fiberboard (not 100% sure). It appears quite dilapidated, sagging and broken in spots. I’m planning to tear it out to the studs, secure some wiring that currently runs on the outside of the board, and hopefully install installation/drywall at a later time.

[Some photos here](https://imgur.com/a/Z4Gaunv)

Have a couple questions I was hoping to get some help with:

  • What approach would you take to removing these panels? They seem to be secured with nails. I was thinking a nailpuller +/- crowbar and some elbow grease.

  • Any health concerns here? Home built 1973; my reading suggests asbestos would not be a concern for wood based fiberboard.

  • For replacement I was thinking drywall, definitely insulating the parts shared with the house, but not sure if there’s something more durable I should be considering.

Thanks in advance.

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