PTFE on the threads won't do anything to seal the fitting. It will just jam the nut before it tightens, and stop the fitting from doing it's job.
Unless the nut runs freely on the thread, it can't compress the rubber sleeve down onto the pipe.
Assemble the fitting without the pipe and look down the end as you tighten the nut. You'll see the hole in the rubber seal getting smaller, and get an idea of how much you will need to nip the nut up for the fitting to seal.
IIRC the grip ring can stop the nut from compressing the sleeve if the pipe is inserted too far into the fitting.
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