You can do this a number of ways. You can make it look like shiplap by using a sharpie for the lines on the wall. Use vinyl flooring on the walls for the look. Hang real wood on the walls either natural or painted.
There are many ways to do shiplap on your walls. You can buy shiplap already primed, you can buy shiplap that isn't primed, you can buy painted shiplap, and you can even buy peel and stick ship lap. You can also buy a large piece of plywood or MDF and have it cut into strips or mark lines and use a marker to make your walls look like they are shiplapped! Here's a few different ideas for you to consider!
It depends on how much work and money you want to put into it. A more affordable option is using MDF board ripped into your desired width. You can also route the edges to create that shiplap look without using spacers. This way saves money but takes more time. http://providenthomedesign.com/2015/10/22/how-to-install-shiplap/
Or you can buy the shiplap that already has the tongue and groove where you piece it together like a puzzle on your wall. This takes less time but can cost more. https://blog.homedepot.com/tongue-and-groove-wall-how-to-build/
Here's the easy way (no power tools) : https://thehoneycombhome.com/shiplap-accent-wall-the-easy-way/