If you've overclocked your CPU it's unlikely a flat 1.2 would be stable unless you have very very good chip but to give it a try there are a couple of things you can do. Under load your CPU is applying a lot more than 0.001 so you need to set the off set value accordingly i.e. - 0.060.
The other thing you could do is adjust the load line calibration to level 1 which will cause the vcore to jump far less if at all under load. You can find Load line calibration settings in the DIGI VRM menu.

Set all the settings related to adaptive voltage to auto for lowest voltage posible, this way i have with sync cores to 4.2 on to 1.2v and somewhere around 1.13 with core sync off, meaning with stock intel multipliers per core.

Use manual voltage. There might be a slight variation.

Update: I updated my BIOS to 1701 and applied the same settings as before. Now, everything works as expected.

Before: VCore 1.290 upon load and gradually drops to 1.2 over the course of 5-10 minutes
Now: VCore 1.248 upon load and drops to 1.2 within a few seconds.

I'm not an expert or the best at explaining things, but I believe what I am experiencing now is how the voltage should work and previously something was a little off