I’ve used Teflon tape on nipples with a vacuum bleeder for many years on both bikes and cars and I’ve never had an issue. I have never seen the Teflon tape react with any type of brake fluid , DOT 3, 4, or 5. What kind of reaction were you thinking might happen ? It doesn’t dissolve or soften. I’ve not had good luck when using liquid sealers with brake fluid. Air forces itself past and brake fluid dissolves some of them. You have to use something or you’ll never know when you’ve gotten all the air out. I saw some bleeders with a coating on them that looked promising, but I don’t remember where. Supposedly kept them from seizing, but it might help seal during bleeding too.