clad shed - seal holes or insulate and cover

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I've built my shed with stud walls made from 2 by 4. I've clad the exterior with boards recovered from palettes, horizontally. Each board, I've routed a lip so they each overlap.

Problem is, some boards have knot holes or gaps between boards due to damage.

I'm wondering what is the best way to seal the shed. Do I buy sealant/filler and just fill all the gaps? Another thought was to use celotex in the gaps and board over.

Any recommendations?
 
A VCL and then vertical countrt battens between the studs and the boards. Too late now though.
 
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Replace the damaged and knotted boards.
You should have really put a membrane behind the boards if they are not a weather tight finish.
 
you could batten each joint with a mastic bead behind. roofing battens would work.
 
i use normal silicon sealant to fill knot holes and gaps in my txg shiplap i then used ducksback to paint over yes the silicon would take an extra application or two to to fully cover but once done subsequent years off treatment would stick with normal coats
 
dont know about other treatments but ducksback is slightly waxy so assume its formulated to stick better to surfaces that would normally fully repel water based paint like silicon
it was £10 for 5L at wilco or post free but around £13 from toolstation early summer
 
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