There are plenty of tall wooden buildings, some with wooden exteriors, some without. Wood doesn't actually burn all that rapidly, so it can be a safe choice in the right circumstances.

IIRC the biggest problem with the Grenfell cladding was the combination of flammable insulation + air cavity + flammable cladding. The cladding was not suitable to be used with that particular kind of insulation. Building codes are apparently pretty complex, but not without good reason.

It seems lignin actually has flame retardant properties, so unless they are adding some additional chemicals to make this wood fire resistant, it is probably even more flammable than normal wood.