I just installed it per recommended specifications - it does not say to smear it in any application instructions so I didn't.

N62 upper oil pan gasket has a sealant built in where it meets the front timing cover and rear main seal. I installed the rear main completely level with the block before oil pan was on and just used the upper oil pan gasket without additional sealant. This is what I did when I rebuilt the original 4.4 and there were zero leaks from this area.