I haven't tried any 120gr bullets in my TCU, but I have fired some fireforming loads with 130gr BTSP's. My first groups averaged around 1", but I didn't shoot them much. I did notice some flattened primers, which confused me because I was using a starting load of around 24gr of H335. The load averaged around 2000fps, and I haven't tried any other loads yet.
I did notice that Nosler does list some hot loads for the 7mm TCU, especially compared with other books. They show an especially hot load using RL-7, which claims 2400fps with a 120gr bullet out of a 14" barrel. I can't remember the exact load, but it was well above (at least 2-2.5grs) what other books listed as max.
H322 should work very well with the TCU, but start low and watch for pressure signs.