Back in the late 70's when I worked the engine line at the Ft. Lewis DOL the Army came out with a paper saying this seepage was not considered a deficiency provided a compression test met specifications. We started doing compression tests for awhile but never had a single one fail so just disregarded the seepage. They also provided instructions for when you do replace the head gaskets you may as an option coat both sides of the gasket around the push rod cutouts with #2 Permatex (but cautioned not to coat around the cylinder areas), so basically, if it's seeping, it's normal, and if you do replace the head gaskets it's optional to coat the gaskets. I did it on all the multifuels that I rebuilt but that was only a couple hundred since I only did them when the engines I worked weren't available (AVDS-1790's from M60A1/M60A3 Tanks and M88A1 Tank Retrievers).