However there is a product called liner that helps in this situation.
Hanging wall liner over paneling.
Once caulk is dry prime the paneling with a stain blocking latex primer.
It is used as a layer between the wall and the actual wallpaper.
I used this wallpaper liner for two projects.
For the 2nd project i am covering wood paneling and doing the same layering technique.
Install wallpaper over paneling if the grooves in paneling are 1 4 inch deep or more fill them in with caulk.
Technically there are no wall coverings specifically designed to hang directly on paneling.
Wipe away the overflow of caulk by running a putty knife along the groove.
I did one layer horizontal and then a vertical layer my chalkboard wall is amazing.
It can cover uneven plaster brick paneling and many other surfaces.
It is usually off white or cream colored.
The surface must be prepared according to the directions in most cases this product is hung horizontally while the final product is hung vertically.
If the surface is slick such as a wall painted with high gloss paint or wood paneling apply a thin coat of gripping primer or wallpaper primer.