The clutch pack to flywheel bolts should be 3/8" bolts. Grade 5 should be 35 ft/lbs and grade 8 can be up to 50 ft/lbs/. For this application I have always torqued them to 35. Never had one come loose in 40 years. Are you sure the spec you were looking at wasn't for the flywheel bolts that hold it to the crankshaft? They should be 120 ft/lbs if grade 8. 85 ft lbs if grade 5. I would not use 120 inch lbs. That is not enough... equivalent to 10 ft/lbs.
By the way, I think the stripping sensation you were getting was the bolts stretching. Compare to a new bolt and you will see the difference in length.