The "secret" is in Note 7 to the Tables (Pg 679) which allows you to go tp the next number of conductors when your math gives you a fill of 0.8 or more (you can round up)
Doing the math if you divide the available area for a 1-1/4 ( .589) by the area of the #1s you get 3.828 which allows you to round up to 4
The Tables in Annex C take this into account