Will,
I know in Switzerland at least, irregular timber is rejected or cut up into smaller pieces where its irregularities do not matter.
The walls were generally framed with wood plank infills, and highly refined. Precision was absolutely necessary.
Half-timbered, like Fachwerk (Switz. Riegelbau) structures use very short timbers.
I can'r say as much as to how it's done north into central Germany
