Each system should be evaluated for exposure of equipment to jet fires. The design team should develop
a plan to mitigate exposure as part of the hazard analysis. Fire barriers, walls, enclosures, and insulation
systems are frequently installed to meet code requirements where separation distances are not
sufficient or where the probability of exposure to a jet fire is high. Barriers are sometimes installed for
high risk exposures such as storage vessels, even if not required by Code rules.

No, this is not a common or preferred approach. Isolating the source of hydrogen is the best safety practice. Water systems could extinguish the flame but allow the gas to continue leaking and result in an explosion if reignited.

Sprinkler systems and other fire suppression means are prescribed per building and fire codes to limit fire spread to other materials. In the case of a hydrogen leak and fire, it is best practice to isolate the hydrogen source, and let any residual hydrogen gas burn out. Even if the initial fire is extinguished, additional leaking hydrogen may accumulate and ignite with the potential for an explosion. 

AICHE ELA253 CHS ” Introduction to Hydrogen Safety for First Responders” is a good reference and discusses both LH2 and GH2. LH2 fires are very unusual. LH2 releases usually are GH2 so the fires at either ambient for low flow or the GH2 is a cryo temperature for high flow. Fires from LH2 tanks ignite less frequently than GH2 high-velocity releases. The colder the gas the less potential for ignition. The guidelines for managing a hydrogen fire is to eliminate the source of the fire before putting
the fire out while keeping equipment exposed to higher temperatures cool.