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Personally I skip wallpaper in a bathroom unless it is just a "powder room" with no shower or bath. Check these out:
https://www.thespruce.com/should-you-use-bathroom-paint-1821382
https://www.bobvila.com/articles/solved-how-to-choose-the-best-paint-for-bathrooms/
https://www.thisoldhouse.com/painting/21173593/choose-the-right-type-of-paint-for-your-bathroom
Flat paints have more pigment particles and less resin and binders. As a result, these paints have a rich color and low luster, but are more prone to moisture infiltration. Additionally, they don’t stand up to scrubbing and it can be tough to clean walls with flat paint without affecting the finish. For these reasons, it’s best to pass on a flat finish paint for bathrooms.
The best finish for a bathroom paint is semi-gloss or gloss. Both options will give you a finish with some shine that helps the paint resist absorbing extra moisture that leads to mildew growth.
Hi Indy: If you want to paint, I'd use something like an eggshell or satin finish paint. Flat paint is hard to clean and will absorb the moisture from the bath or shower. Enamel, or shiny paint will show every bump or dent in the wall, even though it's easier to clean. Preparation is the key to a good job. I have wallpaper in my bathrooms, just regular wallpaper. Make sure that you have enough wallpaper paste near the edges to keep it from curling. If it does curl, you can stick it back down with Aleene's O.K. To Wash It glue. Yeah, ask me how I know :) I don't have much curling, just where I didn't put enough wallpaper paste, and only on the part that has the border on it. It's been up there for over 17 years, yeah, time to change it, but I really like it so I'm not going to do that :) The 1/2 bath, the one with no steam from a shower, has not curled at all. So, you can pretty much use what you like. Be sure to prepare the walls properly first, though. Here are some sites that will tell you about that:
https://www.miltonandking.com/blog/how-to-prepare-your-wall-for-wallpaper/
https://www.hometips.com/diy-how-to/wallpaper-removal.html
Good luck
The best finish for a bathroom paint is semi-gloss or gloss. Both options will give you a finish with some shine that helps the paint resist absorbing extra moisture that leads to mildew growth.
Vinyl wallpaper is the best type to install in a humid bathroom environment,. Vinyl wallpaper is water-resistant and can easily be wiped down, and it shouldn’t absorb water that could lead to mildew or mold problems. While most vinyl wallpaper is applied with adhesive, peel-and-stick vinyl paper can be a good alternative for renters,
If you buy the paint intended for kitchens and bathrooms you can use any sheen really. If you've got lots of inperfections in the walls you may want to go with less sheen or it will exaggerate them. Wallpaper is tricker - how steamy does your bathroom get? If you have good ventilation (like an exhaust fan) you could do wallpaper - just make sure it's wipeable. :)
I have good ventilation but having seen how difficult it is to remove wall paper, I think it is safer sticking to paint now?
Thank you very much for the advise on the paint here, FrugalFamilyTimes.com

You could use eggshell or a satin finish paint
If you use an adhesive primer on your walls first, removing wallpaper at a later date is a breeze.
Hi Indy, I used semi gloss paint, and for the wall paper, you can use any type, (except in the tub/shower area), I advise to use the bathroom fan when showering so the moisture is less, I had regular wallpaper in mine and it held up well, because we use the exhaust fan to vent the moisture.