What ever you do, make sure that all areas of the foundation are treated in the same manner. Front back and sides should all have the same settling rate. Dig down on the back and sides and mimic what was done with your retaining wall. You can tie all of these together with a thick reinforced hearth. Put your moisture barrier either between your retainer walls and the hearth or directly on top of the hearth (between the hearth and insulation).
Since you will not have a wood storage area, this would be the best way to stop the moisture wicking problem. Failure to do this might mean retrofitting French Drains. Trust me, you don't want to do that
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