My grandson went to a Jr college for auto mechanics he rebuilt his 390 and I saw that stuff every where. I ask why answer the instructor said to use it. Then I see it on the oil filter adapter. I ask don't you think that stuff squeezed out on the inside too we need to pull that off and clean it up. If it comes loose it's in to oil system after the filter.
Years ago we ran a dirt track car withy a "Claimer" engine rule and we would angle mill the heads too get the compression up and we'd use silicone to seal the manifold to the heads to keep the tech guy from noticing. sense the tech shed wasn't lit very well. Also it looks like some body has used something to block the heat riser "white square" in the manifold.
At one of my previous employers we used Teflon paste on pipe fittings. Unfortunately, most people didn't understand the concept of "a little goes a long ways" and applied that stuff like they were frosting a cake. Not only did it get all over everything, but it often got into the plumbing systems and caused a lot of burn-in testing failures.