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The Duravent is already insulated. You can box it in and build a masonry chimney, its just personal preference, however, you could use cheaper chimney pipe than the double wall stainless if you are going to enclose it. The stainless is purpose built to be exposed and stay shiny and pretty.
Nice work on the anchor plate. I ended up going for the stainless chimney also since I couldn't find the clay chimney flue pipe here in SoCal.