Efflorescence question

I want to finish one of the walls in my basement that looks like it was drylok’ed or something along those lines. There is a small area of that wall that has some efflorescence on it and it caused the drylok (or whatever it is) to bubble up. So I scraped away a bunch of it and will clean it up a bit more.

So my current plan is to use those insofast panels but I want to make sure I don’t create something that will lead to issues down the road. So my question is, if I scrape enough of the loose stuff off, could I put some Drylok extreme on it and then put the insofast panels over the top of it? My thought is that if I do that it should decrease the chance of efflorescence wanting to form there again since the humidity shouldn’t affect it nearly as much.

I am not really sure why it is just that one area for the efflorescence but unfortunately there is no way for me to do anything on the exterior because of a ground level deck that is there.

Here is a picture of the area (the picture uploaded sideways, but you get the idea):

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