My reaction is to look for another.
Some garages are excessively strict, (does it impress the DVLA), but the history could be more 'caring'.
120k is a lot of miles, but it is a Toyota.
You will also need someone competent to work on it, if needed.
As it is a hybrid, I would be worried about replacement battery cost, and where to have that work performed.
Read Michael Brown's thread regarding battery cost.
Based on what I have read about early Hybrids, I would not buy it.
You ought to be able to get a Gen 1 facelift for not much more budget, albeit without a pop top.
Good Luck, whatever you decide