What's the best strategy to reduce moisture in this garage?
The proper way to fix it is to dig- all the way down to 6" below the bottom of the foundation- then install drain tile &amp; gravel. Coat the outside of the walls with tar, then install plastic protector sheets so it doesn't get damaged by the backfill. Condensation could still be an issue- perhaps installing closed-cell foam around the outside (say, 2-4" thick) would insulate the walls enough to avoid it?

You shouldn't use DRYLOK; it won't fix the problem anyway. Water will just fill up the cinder blocks until it finds an opening.

The roof is definitely an issue as well. I'd rip that rubber off, pull off the flashing &amp; gutters, re-do all of the eaves (since water has to be running right under the flashing and soaking the wood frame), then reinstall flashing &amp; gutters, and shingle the roof (since I don't know how to install a rubber roof correctly).