Bought home and in bathroom they put wallpaper over paneling.

If it were my house, I would yank it all out and replace with proper cement board intended for bathrooms. If that is not possible at this time, just glue it back down.

Sounds like you will have to take down the paneling.If the paper is coming off most likely there is moisture damage on the paneling

ship lap over it?

I agree, remove it all. You don't yank wallpaper, you wet it to soften the adhesive and removal will not damage the surface beyond damage that is already there. Correct material for a bathroom is green board, not cement board, except in shower or tub areas as a base for tile.

have you tried steaming the wallpaper? make holes in the paper where it's lifting and steam will do the rest. if there's any sticky residue, that's leftover wallpaper glue. steam some more and "scrub" with mild sponge and/or mild abrasive.

I'd take it all down, they probably did that to hide the paneling. It's probably a mess. Paneling isn't made for bathrooms.

If it's lifting best would be to remove the paneling. Repair the walls or replace the drywall. Not much else can be done because it will continue to lift off.

I received some very helpful information. Thank you everyon!