I just tested it on dynamically created room and I got events, but I used average of 25.
{"request":"create","description":"test", "room":12345, "bitrate":512000,"publishers":5,"secret":"topsecret", "fir_freq":10, "audiocodec":"opus", "videocodec":"vp8", "record":false, "audiolevel_ext": true, "audiolevel_event": true, "audio_active_packets": 100, "audio_level_average": 25},"transaction":randomString(12),"session_id":session_id,"handle_id":handle_id}
So what I think is that your average of 120 is not crossing that limit and then there is no change in audio level.
127 is muted, so try to mute one side and probably you will get event.
you can observe audio_dbow_level on publishers handle together with talking property