If dielectric grease is used improperly the dielectric grease can indeed cause problems with the electrical connection.
Dielectric grease if used improperly can actually interfere with the electrical conductivity of the electrical connection and prevent proper electrical contact and electrical flow.
This can lead to intermittent connections or failure of the electrical connections.
Although if you use the dielectric grease correctly, the dielectric grease can actually protect the electrical connections from moisture and corrosion.
Dielectric grease is a non conductive insulator grease and when used on electrical connections it can create a barrier between the contact points and prevent electricity from flowing correctly.
And if the dielectric grease is applied too heavily or not properly removed it can also lead to poor or intermittent electrical connections, especially when the electrical connection is moving or vibrating.
The petroleum based dielectric grease can also cause issues with the rubber, polymer or silicone seals in electrical connections and could degrade the seals and rubber and lead to moisture or dust intrusion.
Dielectric grease should not be applied to the actual contact points where the electricity flows.
These is because dielectric grease is an insulator which protects the electrical connections from corrosion and moisture.
Dielectric grease should be applied to the outside of the electrical connection to create a barrier from moisture and dust, etc.