Thanks Sonic and McCreed. For some reason I assumed that kits sold within Australia had real rosewood, but kits shipped overseas had engineered. I thought the dry appearance was just from unconditioned rosewood. Given other reports here, I think I got lucky that the masking tape didn't do any damage. Good thing I used my expensive blue low-tack tape.
After reading both of your posts, I am very strongly leaning towards sealing the neck. I will still get most of the look of rosewood, but the smooth sealed fretboard of maple (which I am used to and like). I don't mind having to sand and polish the frets again after sealing. I saw a couple of fine scratches with the benefit of sunlight today.
So, assuming I am going to seal with acrylic lacquer, should I still smooth the fretboard with 0000 and 1200?
I have plenty of CA so I will try to capture the sawdust and mix. Perhaps sanding over a sheet of plastic or paper so I can form a funnel and capture dust into a dish.