This is absolutely correct.... WD-40 was IIRC originally a product developed IIRC by NASA to disperse water while still lubricating critical points.
The name "WD-40" means "water Dispersion, take-40"... That means it was the 40th lubricant NASA tried, but IIRC the only one that actually dispersed water.
When one considers that water is to a certain extent essential for the life of a fretboard, I think that the problems that the Dispersion of said substance causes should be more or less obvious