Ultra grey is some kind of RTV Silicone? I wouldn't use it between VC gasket and head for fear of bits of it coming off and plugging oil passages. I'd install it dry but make sure your valve cover is not warped and wipe clean the head surface first. I got word that the VC gasket I installed dry is leak free.

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85 300D turbo pristine w 157k when purchased 167,870 July 2025
83 300 D turbo 297K runs great. SOLD!
83 240D 4 spd manual- parted out then junked