When I started in the plumbing profession, water heaters were set at 160° F. I can’t remember how many water heaters I installed working for my father’s plumbing and heating company during my youth, but they all were set at 160° when we left the jobsite.
The temperature of 160° was a standard hot water temperature used in the profession. The reason for this temperature was simple. The water heaters could easily heat the water to 160° and there was plenty of hot water available for the building occupants.