Caterpillar's official position (I know, I present the Caterpillar Maintenance Seminars at FMCA Conventions, Diesel RV Club Rallies, etc) is to install filters dry IF, repeat IF you have a manual primer pump. Done it probably 100 times over the years-- never a problem.
BUT, if you do not have a manual pump (or until you install one which just takes removing two bolts on the secondary filter head and installing the pump in the place of the block-off plate) DO NOT INSTALL THE FILTERS DRY.
Instead, slowly fill the small outer holes which are the filter inlets.