Gaskets cost less than engine rebuilds.
If the stock gasket didn't have any additional sealer, it's not needed, and worse is it may cause expensive damage.
Generally, engine side cover gaskets are put on dry. A little wipe of oil doesn't hurt and may help them come off better later on. Silicone, besides being a pain to clean up, is a liquid and bolted between two surfaces it'll go all over places it shouldn't.
I don't know how many times I've seen this junk and every time I work on something where someone has used it I belt out choice words when I encounter it.
A previous owner had just about managed to destroy this engine by being cheap. Besides that, there were loose and broken parts. It very much looks methed up. If it wasn't someone on drugs, they were brain dead anyway.
The case has a passage for the transmission oil supply and they pretty much plugged that up.
The oil pickup screen was destroyed. It had become so clogged it distorted.
I also had a fun time removing all the silicone worms.
This engine runs, but I'm certain there's a lot of damage that has drastically shortened it's useful lifespan.
It'll get put back together and run until a big bore kit is put in. That's the owners plan. It has already been rode like this for a while, so we're going to run it until the smoke or noise becomes too much.