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Before applying the wood, make sure your wall is smooth so that it can stick to the wall firmly. You may need to sand any texture prior to application. If you are applying the shiplap in a bathroom, as an extra precaution against moisture, seal the wall with a primer before shiplap application.
The wall needs to be clean and dry, and it is the right time to do caulking and fix all existing cracks and holes when necessary. Preferably, you should paint the wall before installing the shiplap in the bathroom with paint resistant to mold and mildew.
Whether you decide to install shiplap as an accent wall, on your ceiling, or as a half wall application, shiplap is a great addition for virtually any bathroom.
I started by installing that first plank that brought the first line above the vanity. Then, I continued all the way down, following the profile of the vanity. Once again, I didn't install any of those small pieces until they were all cut and fitted.
Yesas with all wood trim or wood material in potentially high-moisture locations, the products will hold up so long as they have been sealed properly. If proper initial sealing and regular inspection and maintenance are employed, shiplap in a bathroom will last for a long, long time.