Flashing is in-deed NOT required around a window, but rather an optional method of installation. Windows and siding are designed to leak (note the deep tracks in your window with weep holes, both inside and out to move water). However, if a window is installed correctly (I.e.; proper flashing and caulking used behind the siding etc) then it should not penetrate the wall cavity. In short.........Caulking is GREAT and IS acceptable, BUT DOES require maintainence by the owner. I check mine every year before winter hits! It just makes good sense! -Hope that helps!
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