The 12.5mm setting, done with the carbs on their sides and the floats just touching the float valves, resulted (for me) in a very high fuel level, causing the bowls to overflow. I had to set the static float distance from the flange to about 24mm, which leaves the floats at an angle, so that the point farthest from the hinge is the high point from which I'm measuring. Once the carbs are reassembled and back on the bike, this leaves the fuel level at about 3mm below the level of the float gaskets, which seems go me to be correct, and which does not leak.
I am still confused by that 12.5mm figure in the manual - it was just so far off for my application.