You wont have any luck topcoating over the asbestos, but it would be best to leave it in place, run furring strips layed out similar to a framed wall over it, then lath, scratch/brown coat followed by the stucco topcoat. You will still want to flash it all out similar to a framed/sheathed wall including a weep screed at the base. You will have to address widow/door openings with trims or j-channels as well as addressing any other protrusions such as spiquots and electrical. Dependent on your location, you might want to consider the newer elastomeric/acrylic topcoats that remain flexible and contract/expand with temperature changes. Lot less chance for cracks but cant be textured as heavy as a traditional topcoat stucco.

The siding is nailed to the original wood lap siding underneath. It was textured to resemble cedar singles. It obviously was used as are aluminum and vinyl siding to eliminate the need for painting.

I personally think any idea of attempting another surface to cover the singles will be more trouble than it is worth. You can remove the singles and then deal with the surface underneath. However, it will be a major problem getting rid of the singles.

"You can remove the singles and then deal with the surface underneath. However, it will be a major problem getting rid of the singles."

Thus the reason asbestos siding is often simply buried under another layer of siding.

You also may find a lot of damage under the asbestos siding.
Siding in good shape is rarely covered over.

I love asbestos siding. Holds up to everything. If a good paint color, is chosen it will compliment your house. You won't ever have to remove it. That's the law.

I am considering covering asbestos siding with either a brick facade or roofing slates,which would be a one of a kind.