I've had a couple VW Diesels (two non-turbo, one turbo) and they all (like most diesels) "loved their oil" - the added expense of synthetic never seemed worth it to me.
You don't need to blow anything out - but take care with the block heater - I lost my favorite diesel when one fell out on I83 - I didn't really notice anything wrong until there was no heat (my temp gauge was broken) - by the time I got to an exit it was a bit late for the engine - I slapped a freezer plug into the hole and filled 'er with coolant - and she did run - but she was never the same - the overheating had "clearanced" the engine -
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