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precisely - the 356 is longer, therefore the transmission(frame) mounting is different, driveshaft is different, rear end is slightly different. thicker radiator, transmission linkage different, etc. From memory I think the brakes are slightly wider too.
Running an R11 is a great option, depending on what you find, be aware the input shaft/cover/TOB is 356. (or a custom pilot bearing)

Pinfo has your back...

DAF

Not 100% sure, but front springs may differ also

And after you drive a good running 120, especially with overdrive, you absolutely won't want a Super Eight.

I'm thinking that trying to convert a 120 to a 160 Super 8 would involve a substantial amount of work, not to mention all of the very difficult to find drive train and trim parts that would be needed. Although similar looking in outward appearance, there are significant differences between the two models. It would probably end up being more trouble that it is worth and I'm not sure how good the end result would be. The car would still be a 120 doctored to look like a 160. No doubt that this would impact resale value if the car were to be sold in the future.

I once saw a 1942 120 Convertible Coupe at an auction that had been modified to look like a 160. However, whoever restored the car only swapped out the trim and badging. The car still had the 282 CI 120 engine instead of the 356 CI. When the car came up on the block, a number of potential bidders sat on their hands as the car, although pretty nice, was seen as something that was faked. It probably sold for about what a regular 120 would have gone for, and probably a little bit less. I also heard that the car had been a no sale at a previous auction. Something to think about before undertaking this project.

There is now a fairly solid unrestored 1940 160 Coupe for sale on Facebook Marketplace at a very reasonable price of $3,300. Hard to tell how good it really is from the photos, but it may be of help. Car is located in Pennsylvania. Here is the link to the posting:

https://www.facebook.com/marketplace/item/961374622369455?ref=search&referral_code=null&referral_story_type=post&tracking=browse_serp%3Abc319fb4-82e0-402f-a65e-bb82a8f74e19

All I can say is good luck!