We had to lean our 98 125 EXC out quite a bit to get it running clean. However, I don't know what the current settings are as it's been quite a while since I've torn into it. I think I went two step leaner on everything (clip and both jets). The #7 slide could help, too, but I never tried that.
KTM 2 strokes are always jetted fat from the factory. There's not a lot of jetting specs on the 125 EXC that I've ever seen, though.
I could be persuaded to tear the carb down for a look see but it'd involve hoisting a dark lager or two, at least in spirit.
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John Brunsgaard - JEB
01 KTM 400 EXC, 99 KTM 250 EXC, 99 KTM 200 EXC, 98 KTM 125 EXC, 98 KTM 380 MXC (gone), 96 KDX 200