How old is the house?
Is it plumb and level?
If it has lasted a few years without significant problems, it's clearly
o.k. for local conditions.

I leave the answer to someone with more experience, but I understand
that cedar needs special treatment: compatible flashing material and
installation to let it dry from behind.

I think you are concerned about nails going into the wall cavity and
doing damage...
Choose nails carefully and that will help.
There are no guarantees.

TB