Can bad gas cause fuel injectors to fail?

Dont’ spend any more money. The 125 PSI of compression flat sucks so you have serious engine problems more than likely.

When the shop found 125 PSI they should have immediately run a wet compression test to determine if the rings are gone or the problem is in the valves. It’s likely the former.

Given the shop doesn’t know that 125 is bad then I would question the injector diagnosis as well.