This is another name for paintable caulk that lousy carpenters use to cover their mistakes. Typically used when the workman does not know how to miter wood so the joints are tight and no cracks are visible. Or, if the guy who installed your sheet rock walls cut the holes too big for the outlets so he puts on the wall plates and caulks the gaps.
You actually paid someone to install those windows? That douche must have used 10 tubes of liquid carpenter. What a shitty job! The guy who put that molding up should have his fingers cut off. Look at all the liquid carpenter he used to fill the gaps.