If this is a service entrance conductor that's carrying the entire load of the service and if there are no derating issues at play, then you only need to size the wire at 83% of the load. In effect, a 100-amp service only needs to have 83-amp service entrance wires. That makes #2 AL THW a perfectly valid choice.
source https://www.inspectorsjournal.com/topic/18816-sec-wire-capacity-just-short-of-main-circuit-breaker-size/?do=findComment&comment=172224
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