Try

--generate-sea:no-sea-sectors,extend-sea-sectors

FWIW, I use the command

--generate-sea:no-mp,no-sea-sectors,extend-sea-sectors,close-gaps=1000

I use the following rule in my polygon style file:

landuse=residential [0x02 resolution 16]

and my TYP file defines the 0x02 polygon as a uniform grey colour

My TYP isn’t particularly customised for topographic maps (though it does include definitions for contour lines) but you can take a look to see how I defined the residential polygon (and draw order):
http://www.cferrero.net/maps/downloads/CF1400.TYP NB you will need to use the associated style for this TYP to work properly: http://www.cferrero.net/maps/downloads/charlie.zip