That is a really shit job. I've put tongue and groove (clip lock) flooring on batons before but directly on the concrete floor ( hardwood batons on the concrete and flooring on top. That insulation looks horrible, some type of chipboard. In fact Fifi is right, often this stuff can contain formaldehyde and other nasties. A bit off topic but I checked out a new hotel in Pattaya several weeks back, very luxurious but when I looked at the rooms I could smell formaldehyde probably coming from all the wood paneling in there. I said "thanks but no thanks".