There are epoxy paint products you can buy to seal wood aquariums. With proper curing times, if it is safe for fish, I'd call it safe for reptiles.
However, ...sounds like you need a new terrarium. That paint won't really seal, and you can't scrub interior paint. Paint over damaged (probably moldy) wood won't last long anyway. Never heard of that reptile guy, but I can't think of any animal I'd keep in a non-sealed enclosure - maybe something was lost in translation??
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