Sealing window glass

[phiaxs]

   

Hi everyone!

I’m in the middle of staining and varnishing my window frames. I’ve noticed the previous owner has tried to caulk between the window glass and timber frame. There’s a gap at the bottom part of the window and there’s some small movement when I press on the glass. Is it a good idea to seal all sides of where the glass and frame meet with Sikaseal glass and weather sealant? Should it be done on the outside or inside? Can I apply it after I stain and varnish?

Thanks for your help as always!