I was intending to use the 12700K for my music server build and looked into setting PL1 at 65W. Performance at 65W is on par with a Ryzen 5800x, so good enough for DSD256 using the lighter modulators and filters in HQPlayer. I am going a different route now using a 3rd gen Intel scalable processor with a TDP of 150W.
Do you use HQPlayer? I can upsample to DSD256 in Roon with my 2011 MacBook Pro with only a dual core processor. HQPlayer is a different beast, however.
You can set the MIN-MAX TDP to 65 for the new i7-12700 chip. I have been running my passive cooled audio server for a few weeks now, upsampling all FLACs to DSD 512 and I have never seen Core Temp exceed 60C.