So we are in agreement that breaker setting cannot exceed its terminal rating amps, even if load does not, except for next size up cases. ?
In cases where the next size up rule, 240.4(B), doesn't apply, the terminal rating of the conductors cannot be less than the trip rating of the breaker. Examples are tap conductors, transformer secondary conductors, and overcurrent devices exceeding 800A. For a 400A breaker on a transformer secondary, you need 400A of wire at 75C...not 380A of wire at 75C. From 310.15(B)(16), that would be 600 kcmil copper. Doesn't matter whether you have 380A of noncontinuous load, or 320A of continuous load, or 10 Amps of continuous load. When 240.4(B) doesn't apply, you need at least as much ampacity as you have overcurrent device. Both in terms of terminations and wire at conditions of use.
Once you are behind that transformer secondary breaker, then you can use the next size up rule. Feeders, as it is defined. Sections of conductors that are sufficiently protected at or near their ampacity, and against overload.
In cases where 240.4(B) does apply, very common in my scope of work, your conductor ampacity and terminal ampacity both need to not be less than the previous size OCPD below the one that you are actually using. The conductor terminations also have to have an ampacity for the load with the continuous load factor applied to the portion where applicable. In otherwords, both of these ampacities need to round up to the OCPD you are using, where required. And both need to be sufficient for the load.
If you are in doubt, and you'd rather spend the little extra money on material just to be safe than the time to research your uncertainty, you can simply make sure that all terminations and conductors at conditions of use, have an ampacity meeting or exceeding the OCPD. Pretending that 240.4(B) doesn't exist.