Ok, so like i thought, the default "MSI Performance" power limits of 253W are way too much for your cooling, i expected nothing else with a small-sized system. Unless you manage to fit a 360mm AIO water cooler somewhere and get enough airflow through its radiator, you will always tend to have worse cooling in small form factor systems compared to bigger ATX ones. Smaller cooler, less free space and less airflow through the system.
Even the 181W are too much, and it's very good that you haven't gotten an i7 or i9 for this, because they would have had to be put on a very tight leash. The i5 we can just about get under control without lowering the limits too much more. For setting individual power limits, you don't select anything, you just start to type the number you want (in Watts).
So for example, you can try 180W short / 160W long power limits, or 175W/150W. Having a large delta (181W->125W), like you can see on the Intel defaults sometimes, that was mainly used for getting better benchmark numbers in the launch reviews, if the benchmarks can finish in under a minute. Usually it's better to not have to resort to such a huge difference. Remember, this step 1) is only about protecting your cooling, so it's enough if you keep the temperatures from being in the 90°s.
Then in step 2), we work on lowering the mode for CPU Lite Load. Most of your questions should be answered in the guide. Basically, the more you can lower this mode (while keeping full performance and full stability, which you both have to check), the better and the more efficient the CPU will run.
Note down your baseline performance score in Cinebench Multi with the correct power limits for your system. If all goes to plan, the performance should actually increase a little once your lower the CPU Lite Load mode. With the small footnote that, on a B-series board, you may have the performance drop off a cliff below a certain mode, without being able to counteract it. This remains to be seen. But for example you can try Mode 12 right away, this should immediately improve things, and even on a B-series board shouldn't cost any performance.