I'm not sure what is correct actually.
Your monitor has dpi of 107, this means that 107/92=1.1630434782608696, so you have to run at 116.3% scaling factor to get the same fonts as the same 92 dpi monitor (full hd, 1920x1200, etc). But GTK3 doesn't support fractional scaling factors (at least the last time I've checked it didn't).
So to me it seems plausible that setting 120% is the correct thing to do. And it should be the only thing you need to do in order to get good looking apps.
Obviously this is not the case. Also it is quite hard to test thing, because it needs various different monitors.
I have to test what happens if I use VirtualBox's scaling factors.
Is there any documentation about this in KDE? Can you contact KDE people, so they can give a recommendation what is the correct value.
What do you need to do to get good looking KDE apps and fonts? Can you set it up and then show a screen shot next to gtk-widget-factory/CB?
:rant: As always the opensource people did the worst job compared to the commercial vendors (macOS/windows)