Great question — answering as the UphillTech team:
The basic problem is that whatever you use as a joining compound/substance has to expand/contract at the same rate as the panels, or be flexible. Wood contracts and expands with heat and humidity, but drywall (and drywall compound/joint compound/mud) does not. So as the wood moves, the joints will crack. So either use a joining compound with the same properties as wood, or something flexible like caulk. Both of these alternatives will be expensive, will take a long time, and will look ugly. An alternative is to rip out the whole thing and hang drywall. Drywall is cheap, will look good, and will take a fraction of the time. But it can be disruptive to the occupants, you will need a way to...
Full answer by Cheery: https://diy.stackexchange.com/a/314695 (CC BY-SA 4.0).
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