There's a lot of misinformation and mythology out there in the tech community about the use of dielectric grease on electrical connections. Some techs, knowing that the word "dielectric" refers to an electrically insulating material, mistakenly conclude that dielectric grease should never be used on electrical connections. This is based on a misunderstanding about how dielectric grease works.
Dielectric grease has two main properties that make it especially desirable specifically for use on electrical connections, especially in wet environments such as refrigerators and washing machines. In fact, this is its primary intended design use. Those properties are:
1. Low viscosity. This means that the grease will readily get out of the way of two metal contacts touching each other and flow around the contacts giving rise to the second desirable properly...
2. Sealant effect. As the dielectric grease flows around the contacts, it seals out moisture and oxygen preventing them from reaching the contacts and causing corrosion and/or oxidation.
Still don't believe me? How about Frigidaire tech bulletin RF1207:
Recommendation for Use of Dielectric Grease on French Door Models with Bullet-Style FFIM (RF1207)
Water intrusion into electrical connections within the FFIM causes intermittent interruption of ice production and melting of ice in the bin.
Symptoms: No ice in FF
Ice melting in the ice bin while FFIM is
Models Affected: All ICON, Electrolux and Frigidaire models with Bullet-Style FFIM
Solution: Use dielectric grease Part number: 5304485963
Bulletin is in the Downloads section here, starting on page 1-5.