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One thing that concerns me is the mention of it being an inch away from the wall, along with you saying you weren’t going to seal the wall. If you have a waterproof membrane against the block wall then there is no reason you can’t put the stud wall right against it rather than leaving an airspace. The point being, if you leave an airspace and the wall is not sealed, sounds to me there is a chance you may have an air convection behind the wall. The effects of the insulation could be significantly reduced if so. If air can get behind, then it would be more like a free-standing wall of insulation in the middle of the room. Just make sure no air flows in behind the stud wall.
Sometimes insulating a cinderblock foundation wall for the first time when it has never been insulated can cause cracking as it suddenly experiences freezing. Butr if your basement wall was previously insulated then you should be fine, but take advantage of the fact that it is open to check the condition and make sure there is no cracking before you re-insulate it.