There are a lot of acceptable options. Fiberglass with a "smart" vapour retarder, such as MemBrain, at least in conditions resembling those in which it was initially tested, is one. Others include XPS, EPS, foil-faced polyisocyanurate, CCSPF and combinations of these with fg.

Water vapour moves through concrete walls. The trick is not to trap it behind or between a polyethylene barrier. Unfortunately, you can still go on dozens of internet sites, let alone building codes, that solemnly inform you of the importance of sealing basement insulation exactly that way, or even using double vapour barriers.

Here is a link that might be useful: Basement Insulation Systems

I am going to use XPS. For ease of framing I have to pull the wall away from the foundation on one side of the house about 8-10 inches. That wall happens to be above grade. Just curious in your opionion would XPS be needed in that area as well? or just framed with Fg bat be sufficient (without mold issues)?