May be wrong, but looks to me like very spotty contact with gasket, and that the sealer has hardened. I think that it does not make sense to use metal-to-metal, machine-fit sealer where a gasket is required. I use permatex #2 on both sides of gaskets to enhance the surety of a seal and to keep the gasket in place. I know that better men than I grease one side, but I have trouble seeing that as having the same sealing power as the Permatex. There is also no good reason to try to reuse paper gaskets. They're available an cheap.
Awaiting thrashing, or, even, agreement.
Richard L.