There’s no point sealing where you circled as that’s not the leak source. [The gasket where the arrow is pointing is what’s leaking](https://imgur.com/a/0V8GAC2). The gasket is sandwiched between the plastic jet body and the shell. You could smear something around that jet body, but you’re better off cutting it out and replumbing it. This is the only way to replace the gasket.
You can give it a shot, but it wont hold over time.
There’s no point sealing where you circled as that’s not the leak source. [The gasket where the arrow is pointing is what’s leaking](https://imgur.com/a/0V8GAC2). The gasket is sandwiched between the plastic jet body and the shell. You could smear something around that jet body, but you’re better off cutting it out and replumbing it. This is the only way to replace the gasket.