I am budget renovating the bathroom and was only planning to paint the walls, ceiling, and floor. Then get some new storage.
When we removed hooks and the mirror cabinet, a bit of the wallpaper came off.

Now need to rethink. Considering putting some kind of paneling over the old painted wallpaper. Is this possible?
Do you need a moisture barrier? I guess there already is one under the old wallpaper. Screw holes, etc., I was thinking of fixing with waterproof sealant in a tube.
Do you need to do anything else? It's not in the shower where the panel is going up but beside it (on the wall where the sink is).
Can you have a panel behind the sink, or do you have any other ideas of what you can have there?
Grateful for answers!