Insulating joist bay no sill plate 1960 home – GreenBuildingAdvisor

I have a house built in 1960 in Climate Zone 4A.  I am looking to insulate or at least air seal the rim joist bays along with insulating the basement walls (pictures provided below).

Since there looks to be no sill gasket, my concern is that capillary action through the foundation walls is going to cause that area to be damper if I do some work around there.

The basement itself is pretty dry, with no leaks or dampness during rain events.  There are some water stains on the joist ends, but no signs of rot.  The rim joist does not come all the way down to the concrete foundation.  The house has a brick veneer (which you can see in one of the rim bay photos below) backed by what I believe to be tar paper.

Any potential solutions would be greatly appreciated.