Teflon tape is great ... for sealing threads.
This is a machined fit with a seal, that seal should make the well, seal, not the threads.. If teflon tape seals the leak it means that the mechanical seal is not working. this fitting has to be very tight to get a good seal, especially the first time its used.
And its not co2 (carbon Dioxide) that kills people in their sleep, its Co (carbon Monoxide) since there is only 1 molecule of o2 in Co it will bind up in your lungs and suffocate you. Co2, will not bind in the lungs like this..