Looking at that cut in the ring suggests to me that it might have been installed incorrectly to begin with and leaked... at which point someone might have pulled it back off and put RTV on it to seal it. I still do not see how, if the RTV was not set up, it would do that damage. The least line of resistance is for the excess RTV is to squish out of there. To me is looks like possible improper torque there as well.
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