705.12(B)(2)(3)(b) doesn't refer to the breaker size, it refers to 125% of the inverter continuous output current. So if the maximum inverter output current is 128A or less, then 125% is 160A or less, and 705.12(B)(2)(3)(b) is satisfied. As breakers only come in standard sizes, if the inverter output current is 120A or more, then a 150A breaker would be too small, so the install would require bumping up to a 175A breaker.
Cheers, Wayne