yea its leaking from there. We tried to tighten the bolt and it gets abit rounded but tube is still leaking....is there an external way to seal the leak?
No external sealing method that I know of.
The big question - Is the fitting cross threaded, or just not tight enough yet??
Try to remember back as you were tightening that fitting. Brake lines can be a pain to get started (especially if you bent the lines), but then should really turn in pretty easily until they bottom out - after which they may need to be snugged up pretty tight to prevent leaking (high hydraulic fluid pressure in there). If it was installed straight, then you may just need a little bit more torque. Try a good quality open end or flare nut wrench.
But if you cross threaded the fitting, then kept turning it in - you're in trouble. Making a new brake line (with new fitting) is a do-able job. Difficulty level is mostly dependent on where the line goes, and how hard it is to get to (both ends). You need the proper flaring tool, a hunk of brake line, and two new fittings. Any shop can do it for you, if necessary. I imagine VW also sells that line as a spare part.
But if you also screwed up the valve body threads - it may all have to be replaced.
Start by carefully looking at all the fittings. A cross-threaded one may visually appear to be "cocked" at an angle, and/or not seated to the same depth. I really hope you didn't do that!
I've installed lines that leaked a "little bit" and just needed to be tighter. Hopefully that's the case - we have our fingers crossed for you.