Dry.. well why not, beside that I have never understood why the stud needed lube when going in the block. I just use moly or engine oil as advised from ARP.
About torque.. yes I am aware of that. As I recall it the stud only must be screwed down no more than fingertight.

Do YOU use any kind of threadlock/sealant in the block when fitting the stud ?

I am sure its my own fault , and its to bad as it was a very nice block with very healthy bores I might be subject to try and test later on.