How do I know what kind of pulse to expect since the concern is static? I may have interpreted the datasheet incorrectly or expected a certain type of spec. I was thinking that at the constant 12V the TVS will not conduct and then something zaps it like static that's >12V and the TVS pulls it to ground thus blowing the (125mA) fuse .
A TVS is not a thyristor which latches on. It is a zener or avalanche diode designed and specified for pulse applications. It begins to conduct at its breakdown voltage and has a low impedance so current steeply increases as the voltage across it increases above its breakdown voltage. It operates as a voltage clamp.
Typically they are used on input or output signals to protect against over-voltage conditions, including electrostatic discharge since they are very fast, however they can also be used to clamp supply voltages preventing damage in the event of power supply failure. During a continuous overload, the TVS will likely fail and short out the regulated supply output, which might blow a fuse. I would use the working voltage and not the breakdown voltage, taking into account the tolerance of the supply voltage. For a 12 volt regulator, I would use the 5.0SMDJ12A which has a reverse standoff voltage (working voltage) of 12 volts.
When I refurbished my DM502 multimeters, I resocketed the dual regulator DIP, and added TVSes to the +5, +12, and -12 volt regulated supplies, as shown below. I was worried that a regulator failure could cause damage to the ADC chipset which has been out of production for decades.