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Basements with persistent moisture problems or flooding shouldn’t be finished until the moisture issues have been fixed. In addition, if your foundation is cracked, you have unmitigated radon levels, or you have asbestos or lead pipes, remediate the underlying problem before finishing your basement. Turning a basement into living space before fixing these issues can lead to serious health risks or structural damage. 

While "dry" mode on your AC can help reduce humidity levels to some extent, it may not be as effective as a dedicated dehumidifier, especially in areas with extremely high humidity or larger spaces. Dehumidifiers are specifically designed to remove moisture from the air more efficiently, making them a better choice for tackling persistent humidity issues.

Yes, basement insulation needs a vapor barrier due to its susceptibility to moisture seeping in from the outside of the house. You should install a moisture barrier before you install insulation or purchase insulation that comes prebuilt with a moisture barrier to avoid water damage in your insulation and costly mold and water remediation expenses. 

Make sure you're calling in the right expert to help repair and/or clean your crawl space. A serious issue may require multiple experts that include a local mold remediation pro, an HVAC pro, a foundation pro, and a plumber. You should also consider using a nearby junk removal service to avoid handling debris that could be covered in mold, fungi, rot, or asbestos.