Plumbing code says residential plumbing is designed for <=80psi, so yes, you should be worried with 120psi in your system. Probably one of the weakest links are the toilet fill valves, but any valve won't like 120psi, and you might find a marginal supply hose along the line, too. Throw in maybe a water hammer situation with your washing machine, and that could end up being costly.
A plumber typically will not rebuild a PRV because the cost of the parts and the labor to do it usually ends up the same or more than replacing it with a new one. It usually will restore it, but if there's a problem, you've wasted both time and money on the part. That's not to say there aren't defective new ones that sneak through once in awhile, but they're rare if you pick a decent brand.