Does this group sound good, play well together, etc., when they are just all in the same room playing? The most important thing is to get the best performance out of the band. Once you figure that out, then comes the question of how to record it.
Just guessing, but a band with acoustic guitars, vocals and hand percussion probably plays better live without headphones just from acoustic feedback in the room they're in, and your best move is to capture the energy and vibe they have going on without screwing it up with too much emphasis on isolation, controlling bleed, setting up overdubbable tracks etc.
So my suggestion would be to let the band set up and play however they like in the room... whatever works for them. Then set up a pair of stereo mics (frankly I disagree with the suggestion of X-Y but whatever works for you... if you have a pair of omnis, then a spaced omni or A-B setup will work better imho). Set them up and move them around until you are getting a good sound just through those mics. Spot mic everything, putting your best vocal mic on the vocalist, using your dynamic mics for the bottom side of djembes or for overly crisp instruments.,. keep your LDCs on up-front instruments such as the main rhythm guitar and the vocalists. Just get a good isolated tone from each instrument so you have some fine control over balance and position later on, but plan on getting the bulk of your sound from the stereo mics.
My guess is that if you're stuck for space in the room, you may end up with some mics too close to walls and get incoherent sound or too much reflected sound. So if you need to apply any acoustical treatment, I'd focus it around the perimeter rather than trying to isolate instruments. IMHO it's foolishness to isolate bleed, unless the band flat-out can't perform the tunes live together and therefore will necessitate overdubs of bleedy stuff (lead vocal, percussion). If that's the case, then forget all this, record guide tracks, then build one track at a time and forget about live energy. That question depends on the band.
The main thing is to focus on getting a good performance out of the band first, then worry about how to record it later. If you can do that, then you won't need the overdubs and you won't really care about bleed. If you don't even put headphones on them and let them balance in the room as they play then you might be surprised at how little extra mixing you have to do, so therefore it will result in a lot less need for bleed control.