Just came in here to say that even the manufacturers call it sealant... ;-) (Seal is mentioned 14 times by the mfg, lube isn't mentioned once.)
Blue Monster PTFE Thread Seal Tape is a thicker, denser, general-purpose thread seal tape that comes in a monstrous 1,429
cleanfit.com
It does both. If you needed a lubricant only, there are MUCH better lubricants that would work. (a drop of 5w-30 for example...) All threads have micro cracks and defects. The material added by the tape fills those defects and seals it.
In any case, you don't use that on flared connections. At most, you use a TINY amount of paste on a flare, and then wipe essentially all of it off. Just helping to fill in those micro defects.