Sanded can be used in joints smaller than1/8", it's just harder to force it in there. Sanded is stronger. You can seal after installing the fixtures.
On a bathroom floor, I think sealing is a good idea on cement based grouts.
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Jim DeBruycker
Not a pro, multiple Schluter Workshops (Schluterville and 2013 and 2014 at Schluter Headquarters), Mapei Training 2014, Laticrete Workshop 2014, Custom Building Products Workshop 2015, and Longtime Forum Participant.
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