Replacing masonite in an old home with a fair bit of soil mo

Hi, we live in an area where the black soil is prone to a lot of movement.

We have an old 50's house with masonite everywhere and nails popping out, warping, rusted etc. I want to strip it out and replace it all a room at a time OR just plasterboard over the top of the masonite where it's flat enough.

I've done this in our main bedroom with plasterboard and it's been 12 months - no cracking (yet).

I've been told by a few people not to use plasterboard but so far, I haven't had issues in one end of the house in our bedroom (7m x 6m room - I did ceiling + walls).

I don't like the look of fibro with the nails exposed, VJ is expensive and I'm not sure of other alternatives.

Is it really strongly recommend to NOT use plasterboard if you live in an area where the soil can shift? If so, what would the alternatives be? It's quite a large house.