The location of a vapor barrier depends somewhat on the primary hvac usage. Where people run the a/c most of the year, they put the vapor barrier towards the outside of the building, where heating is the primary use, it is put towards the inside of the building. You could be in one of those 'tween' locations - it could go either way. The goal with the barrier is to prevent the condensation point to occur in the middle of the wall, or to prevent the prevailing heavy moisture from being there.
Foam makes a great insulation - fills voids, helps in air infiltration issues, goes around pipes and wires. Blown in cellulose is better than fiberglass since it is less likely to support air currents, but needs to have a proper moisture barrier - think soggy newspaper - it would take forever to dry out if it got wet. Blown in fiberglass can end up denser than the batts and fits around pipes and wires, too.
The moisture around a bathroom is somewhat troubling, since it is both conditioned and a major source of moisture itself. So, all of that being said, you could leave the insullation, but reinstall it. Once you pull it out, take a razor knife and put slits in it, then you can reinstall it. Others may have some thoughts...





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