NM-B insulation repair?
I'd trust the old reliable electrical tape over the liquid stuff.

Section 334.116 of the NEC (USA National Electric Code) talks about the sheath in very generic terms: it has to be flame retardant and moisture resistant, etc.  There is nothing particularly special or magic about the requirements.

I'd inspect the wire very very carefully, maybe even remove the paper to ensure nothing is going on below, wrap it, then mention and show it to the local inspector when your job is inspected. Maybe even write a note on the cable in sharpie.

The worst case is you have to splice the cable into a junction box that forever more must be accessible.