I have used it and works well. On my '60 220SE Ponton coupe, it was sprayed with a red primer mostly inside the block and just some overspray on the outer parts. Hence why it is not a solid red on the outer. The manual trans box was also coated on the inside and when that was rebuilt, I replaced it. Not sure Mercedes used Glyptal way back then, but yes something very similar. In fact, when they vatted the block everything came off except the red primer. Pretty tough stuff.
See attached pics. On the engine pics, you can actually see the old remnants of the red primer on the outer block. It was the same on the inside before I painted it with Glypyal. I have also heard that the primary reason Mercedes used the primer was to seal the residual casting sand to the surface so that it would not work its way out and into the engine.