I don't think the code will say that explicitly. You have to read between the lines. Early in the design process, I will use the w/sf values to get an idea of the service size. Towards the end of the design process, I will have laid out all the light fixtures and I can actually count light bulbs. I use the 125% factor for the later, but not for the former. My reasoning is that the notion of w/sf is a hypothetical load, an estimate of what the load might eventually prove to be. It is not, in and of itself, a load. It is a number, a guess, and does not reflect any actual installation. It is an allowance that the code calls upon us to include, so that the final service will be sufficient for the user. They gave us the allowance, we use the allowance, and we don't treat the allowance as though it were a continuous load.