Howdy folks! Seen this thread and I had just now become a member! Mark, The IH Cub Cadet 125 was part of the 1968 line up. Those models were, I believe ,.. a 72, 104, 105, 124, and 125. I think the 154 Lo-Boy debuted as well. Also it would appear to me that the {k301} oil fill spout/bayonet dip stick is in fact correct for your model year. I don't know for sure that the mower deck blades are on backwards with out first going out and checking mine.
What we do know is that the previous owner used it once or twice and went right to push mowing. This is one of the most cleanest garden tractors I have seen yet! Very nice find. The Blue Ribbon Service Manual for your IHCC is # GSS-1349 w/ revision1. Very interesting story and machine, thanks for sharing!