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Yes, wainscoting is installed directly over drywall. However, ensure the drywall is in good shape since it will support the wainscoting. If the drywall has issues, such as holes, mold, or mildew, repair them before installing the wainscoting. Alternatively, you can install a plywood substrate before attaching the trim.

Drywall does not necessarily need to be glued to the ceiling, especially when it is properly screwed or nailed into place. Drywall is typically attached to the ceiling joists using screws or nails, ensuring a secure and stable drywall installation. 

However, in certain situations where additional adhesion is required, construction adhesive can be applied in combination with screws or nails. This is often done for ceilings with specific acoustic or insulation requirements. It's essential to follow local building codes and best practices to determine if adhesive use is necessary for your specific project.

Bump-out additions can add some space to a closet without requiring any significant structural work. This entails pushing back the existing rear or side of the closet, simply moving the wall into either an adjacent room or unused space. For ground-floor closets, this could even be extended to the exterior of the home, but that has its own complications. Bump-outs are a good discussion to have with your contractor if you’re just looking to increase the space a little—not renovate the entire closet space.

Drywall can get wet and dry out without sustaining permanent damage, but only if the water damage is minor. If you have a small leak and are quick to correct the issue and set up blower fans and dehumidifiers, your drywall should dry out. If the leak is persistent, the drywall becomes totally waterlogged, or mold begins forming on the drywall, you should remove and replace it.