The problem with Teflon tape is with it getting into the fuel and clogging passages. But I've used it w/o problem by keeping it one or two threads back of the leading edge of the fitting. Sometimes that means it has to be out on the flats, but whatever it takes I make sure it doesn't get into the fuel stream.
For things like fuel systems I'd rather use tape than paste as I'm afraid the paste will dilute and get loose.
For other things, like air fittings, I use a combo of tape and PTFE paste. The tape is kept one or two threads back and the paste is used on those exposed one or two threads. This combo has worked extremely well for me.
Gary, AKA "Gary fellow":
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Dad's: '81 F150 Ranger XLT 4x4: Down for restomod: Full-roller "stroked 351M" w/Trick Flow heads & intake, EEC-V SEFI/E4OD/3.50 gears w/Kevlar clutches
Blue: 2015 F150 Platinum 4x4 SuperCrew wearing Blue Jeans & sporting a 3.5L EB & Max Tow
Big Blue: 1985 F250HD 4x4: 460/ZF5/3.55's, D60 w/Ox locker & 10.25 Sterling/Trutrac, Blue Top & Borgeson, & EEC-V MAF/SEFI