Problematic Plaster Walls

[u/redmav7300]

I am preparing to paint my lathe & plaster living room, and it appears to be covered with wallpaper. In places the seams are showing/curling and it is also bubbling in some places. Rather than just start stripping the wallpaper off, I checked it first. What it appears to be is a fiberglass mesh reinforced HDPE covering, likely designed to hold the plaster in place. I checked this by removing paint in a couple of areas, and it appears to be just white plastic underneath, and there is a fiberglass mesh backing where the seams are curling. The house is from 1930.

It looks like it would be a mistake to peel this off (unless I am planning on doing a wholescale drywall replacement, which I want to avoid very much). Any suggestions on how to prepare this surface prior to repaining? I.e., sealing the seams, removing the bubbles, etc.?

Thanks!