When in the tent, I roll my rain gear inside out, so the wet side is inside. I don't want wet stuff rubbing against my dry clothing or my sleeping bag or causing condensation inside my tent.

When conditions are wet, unless you are where you can build a fire, the only thing you have to dry out clothing or sleeping bag is your body heat. While your body heat can dry stuff out in your sleeping bag, it will compromise your insulation. Barely damp is one thing, but wet is another.

If my hiking shirt, pants and socks are wet, they go into a plastic bag inside my sleeping bag while I sleep in my dry base layer. Yes, the hiking clothes are still just as wet the next morning, but at least they are warm. If you have synthetic clothing and your layers are thin, your body heat will dry them in 15-20 minutes once you start hiking.

Of course if you can build a fire you can wave stuff over it (not too close!). Your clothing will be well smoked and at least partially dry. I normally don't build fires so would do this only in an emergency (if my insulating clothing or sleeping bag got wet).

The trick is to keep your insulating clothing and sleeping bag dry at all times. Do whatever is needed to minimize condensation in your tent.