The term "vorgesetzt" refers to the fence, i.e., you may enclose with a hedge and still place a fence directly on the boundary in front of it. This is important, for example, for animal owners. Apparently, this is prohibited on public areas here.
However, in my opinion, the 1.20m only refers to the enclosure adjacent to the public traffic area ...!?
Regardless of the actual meaning: you can agree with your neighbors about what you plant on the respective side. And if someone insists strictly on the maximum 1.20m, I would simply plant trees/shrubs (at the permitted distance! Observe applicable statutes!) instead of a hedge to provide the appropriate privacy and sun protection.