One particular area I didn't want leaks was on the o-ring on the pipe that slides into thermostat block. Thats where I used it mainly as its easy to damage or even dislodge the seal with all the faffing around involved and it also helps that pipe slide in better I found.
Interestingly, prior to me owning it, my Caravelle had always been serviced by VW and I also found this sealant on that pipe so I'm fairly certain they discovered this could be a potential leak point and used the sealant as a belt n braces approach. I'm not sure if this was an issue with later thermostats but it may account for the change in design. Once everything was bolted down, I also squeezed a little more into the gap around the pipe. Had no leaks anyway.
As VW have demonstated many times, rules are broken sometimes.