This confusion is why I hate the "80% breaker" terminology. It gets people thinking about the load calculations backwards and making statements like "A 20A circuit breaker is only good for 16A". Once you do the load calculation, you select the equipment, overcurrent protection, conductors, etc. based on that calculated value. There is no further adjustment for "continuous", "non-continuous", "80%", or "100%" ratings to be made at this point. Those adjustments were already included in the calculated load.
In the example in this thread, consider 1200A of connected load. If the entire load was continuous, we would take 1200A*125% and end up with a calculated load of 1500A. Then we would select a 1600A MCC, 1600A circuit breaker, and 1600A of conductor. If the entire load was noncontinuous, we would take 1200A*100% and end up with a calculated load of 1200A. Then we could select a 1200A MCC, a 1200A circuit breaker, and 1200A of conductor. Finally, if the load was a mixture of continuous and noncontinuous loading, we would take the continuous load*125% + the noncontinuous load*100% and end up with a calculated load. We would then select a MCC that was => the calculated load, with the circuit breaker and conductor to match.
If we didn't like the results of that calculation, we could selected 100% rated equipment. We would have a 1200A MCC, 1200A circuit breaker, and 1200A of conductor in this scenario and comply with the requirements of the NEC.