NPT threads seal by deforming the threads. Flank to root metal. As mentioned, sealant is less effective then lubricant as lubricant allows the correct pressure between threads to be established without needing the 8 foot pipe on the wrench.
Per the other naysayers who are in love with this thread sealing system that wasn稚 ever really intended for hydraulics, the water in your house that痴 uses NPT pipe isn稚 3,000 PSI.
The other problem is the threads are tapered and I can稚 tell you how many cracked valve, motor, and pump housings I致e seen from over torqued NPT tapered threads basically splitting (wedging) them out
Look, I know it痴 everywhere and it痴 cheap and there痴 no reason to fix anything that痴 not broke.
Very few hydraulic component manufacturers even make NPT ported components , and those that do are only intended for aftermarket.