Hi Cameron,
I think if you refine your search to "vapor permeable materials" or "vapor permeance of plywood" you'll find more useful information. The characteristic of a material or wall assembly of being vapor permeable is often incorrectly, but understandably termed "breathability."
What you are looking for are materials that, when assembled in a wall, allow for moisture in the form of water vapor that somehow gets into the wall to get out again.
Water vapor moves towards an area of lower pressure, so moist air (high pressure) will tend to disperse towards dry air (low pressure). Do a good job of air sealing the interior by making sure electrical outlets and plumbing perforations don't leak air that carries water vapor. If you air seal both sides of the wall to prevent air currents from carrying water vapor in or out, you've solved most of the problem. If the exterior sheathing and interior finish materials are vapor permeable but air sealed, then water vapor inherent in the building materials (wet lumber, wet plasters) can eventually escape the assembly through those materials, though it can take a while.
Moisture can get into walls in a number of ways, but assuming there is no bulk water intrusion (roof leaks or wind-driven rain penetrating the wall, or interior floods), the most common problem is water vapor in the form of high exterior humidity trying to get into a cool, dry space (e.g., an air conditioned space in a humid climate) or warm, moist air from inside trying to get out (e.g. a warm, humid interior in a cold, dry climate).
Saw dust was used as an insulator in ice houses (before refrigeration), so it can't be all bad, but it probably does settle.
I can't
answer the specifics about plywood's vapor permeance except to say that in relatively dry, temperate climates like what we have here in N. California and S. Oregon vapor permeance modeling (research WUFI) indicates that 1/2" CDX plywood is at the vary edge of being acceptable in a
straw bale wall assembly meant to be vapor permeable to both the interior and exterior. I have used 3/8" CDX plywood as the exterior sheathing on several straw bale building projects, including my own house. I wouldn't use plywood thicker than 1/2" and expect much water vapor to move through it unless it were drilled with holes to facilitate that. How many holes, what size, etc., isn't studied that I know of, and the number and size of the holes could compromise the material's function if also meant to be a shear wall.
When we talk about how vapor permeable a material is, we're talking about a given thickness. For example, 1" of lime plaster is considered to have a permeance rating of 10 US perms (give or take). Clay plasters are somewhat higher. If you apply 2" or 3" of these same plasters, the permeance drops a lot. The same thing is true of materials like latex paint. At one or two coats latex paint is considered vapor permeable. But a few paint jobs (six or more coats) and the built-up layers of paint can be water proof. I once lived in an apartment that was at least fifty years old--I'll bet there were as many coats of paint on those walls!
In my remodel work I have removed a fair amount of plywood and OSB sheathing from straw bale walls and found no damage caused by vapor condensing against the sheathing and decomposing the bales, but I understand that OSB typically has much more glue--and you're right, that's the part that limits vapor movement. If I worked in a more humid climate, I'm not sure I would have found straw bales in good condition.
This is not a well-studied subject, and most of what we know about straw bale walls and plywood sheathing is anecdotal, but WUFI modeling suggests that this wall assembly--straw bales plastered on the interior with a plywood exterior sheathing (and and either plaster, metal, cement board, or wood siding) it's OK in places like S. Oregon, much of California, and probably throughout the arid Western United States.
Good Luck!
Jim
Many Hands Builders