Q&A: Our 60+year old home has dark reddish brown insulation in the attic, itchy scratchy what is it?

Question by chubby: Our 60+year old home has dark reddish brown insulation in the attic, itchy scratchy what is it?
This house was built 60+ years ago. It has 2x6 walls. All walls are ship-lapped lumber inside and outside with wood shavings inside. The attic is insulated with a loose type of insulation which is packed down and looks a lot like pubic hair. Of course it isn't. It is scratchy, itchy and when breathed in feels like breathing buffalo board dust in the throat and in the lungs

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