Apparently you have no choice but to opt into DCC if you want to use your PayPal balance. For example, while the option to use your balance does appear if you opt to be charged in USD:
it does not appear if you opt out of DCC:
Probably not a new thing they're doing but figured I'd let people know.
(€129.95 is $127.03 at current exchange rates per Google, so PayPal's conversion would result in paying $133.64 - 127.03 = $6.61 extra, not taking into account the existing PayPal balance.)