I doubt the oil would get into and replace all the air spaces in the PLB. If it did, al would be well. So long as the oil did not interfere with the functioning of the unit in any way.Correct, the increased atmospheric pressure would still be transmitted to all the individual components, BUT would be equalized throughout the entire volume of the device as long as all gas was replaced with liquid or solid material. Versus if you just wrapped a vessel with a flexible membrane that trapped interior gas, the compression of that gas at depth would result in inward force around the perimeter, "crushing" the contents.
Essentially, the same effect as how your hand doesn't "feel" any squeeze when exposed to pressure outside your drysuit, since there aren't any gas pockets inside your hand - your skin doesn't squeeze your bones, but with your drysuit if you don't add gas during a descent, your suit vacuum packs your exterior as the interior gas compresses with depth.
It is so much easier and safer and less messy to just buy a DryFob.