I know this guy isn't popular here but some of his info is good and nonbiased.
To attempt to explain in great depth and scientific terms would take hours.
Here is the "basics" of this issue.
First, there are over 40,000 variations of "silicones".
For simplifcation, there are two main branches, one is silicone fluids and then there are silioxanes.
Silicone fluids (oils) such as dimethal silicone fluids will create fish eyes when attempting to paint over them, they "drift" around a body shop, since they are migritory and like to attach to surfaces.
IE, oily, greasy tire dressings use this silicone, it is also in products such as over the counter lubricants, etc.
Most of the siloxanes are not condsidered a dimethal fluid, but are for the most part amino functional compounds, which are non-migritory, and are anti-corrosive. Modern OEM 1K paints and clears use this component in their chemistry.
The "silicone" issue became a marketing issue thanks to 3M attempting to set it's polishes and compounds apart from the others. Yet, they have mislead everyone for years.
Look on their first good selling polishing material Finesse-it, the white polish, read the CAS#'s on the bottle and you may see, (depending on the age of the product) that it contains an acrylic emlusion or an acrylic polymer emulsion, etc, but no CAS # for it. The CAS# is an assigned component number for components by the goverment in order to address HazMat and enviormental/safety issues. The item mentioned has no CAS, since it is an emulsion of siloxanes and other acrlic polymer chains.
If you look closely on many of their labels, 3M, some say Paintable or BodyShop Safe, while others do not carry this information. Read the components list on the bottle and you will find either polydimethalsilicones or something like that.
A polydimethalsiloxane may or may not create the fish eye issue, depending on several factors that are too involved to go into here, but are usually considered a much higher grade and more effective component than the use of the much cheaper polydimethalsilicone emulsions.
Those that contain just dimethal silicones will often create many concerns on a vehicle, such as when used in a tire dressing, etc.
They are "short lived" and not anti-corrossive, give a short term shine and then evaporate away from the surface leaving no protection and breaking down any other protective components and carrying them away in the evaporation process.
The next step up the chain is polyaminosiloxanes and these are much better for use in protective sealants, but considerablely more expensive than the other lower members of the family.