It’s not a misconception. It’s actually the other way round - the Teflon lubricating properties were not why it was originally used, they are a bi-product. Although commonly used in plumbing applications now they originally wanted a deformable sealing material for Ultra high pressure applications that would “flow” with increased temps and pressures.
It worked somewhat but was dropped for the application as it can ball up and actually lock up a thread.
It was a bi-product from DuPont, I have been to the place in Ohio it was produced originally.
