Unfortunately, paint won’t fix your damp feeling. If your roof leaked, would you paint your ceiling? That musty odor you notice every time you go downstairs isn’t normal and it will only return once the paint fumes have died off. Have you ever seen paint bubble off of a wall?
It is due to moisture pushing out from the other side of your wall. Locking that moisture into your wall can increase its damage potential because it now has nowhere to go, while more water seeps in from the outside of your home.