No he didn't.

He said that he capped the lines of code at 100,000, has written a total of 120,923 lines of code during the duration of the project, is using 80,037 lines of code in the current release.

Somewhere, 40,886 lines of code were deleted/replaced. They were still written though.

The 120k lines is from http://www.templeos.org/Wb/Home/Wb2/LineRep.html#l597, but 23k of that is demos, 3k is a tour, etc.

I'm pretty sure the 80k quoted in the beginning is the actual code making up TempleOS; the other 40k is extras.

He could very well have written 120k lines, but there's only 80k in source control. 40k lines being written could be replacing other lines.