I have a rubblestone foundation that was/is in a similar state. Someone filled cracks with expanding foam, other sides have a skim coat of cement. It is a mess.
I have started to methodically start from inside my basement cleaning, removing foreign substances, and restoring the lime mortar where I can. It took a while to get a decent mortar mixture but I had some advise from a local stonemason who worked on similar foundations for my mix. It is interesting to consider how the foundation 'breaths' with the changing of the seasons and expands/contracts as it goes.
It isn't hard work... it is more tedious? I find it relaxing but I only have done maybe 15% so far. It is a bad weather project.
For those that are thinking of doing their own lime-based repointing. Please respect hydrated lime, it has caustic properties that can injury you both on your skin and inhaled. I utilize gloves and a dust mask when I'm mixing and am careful of my hands and arms when applying the mortar.