• what is a "AG" if you don't mind me asking.

    Availability Group, it's a High Availability solution that allows 2 servers to stay in sync and fail over to each other.

    Can't it then just be reset by hand to 120 or is this too simple? Am I missing something?

    Yes, you can update it directly via the GUI or use

    ALTER DATABASE [SomeDatabase] SET COMPATIBILITY_LEVEL = 110