Judge for yourself what the 1-2-3 Agreement states:
f the Hyde Act is seriously implemented by the US, we can pass our own laws to neutralize the Hyde Act- Article 2
1. The Parties shall cooperate in the use of nuclear energy for peaceful purposes in accordance with the provisions of this Agreement. Each Party shall implement this Agreement in accordance with its respective applicable treaties, national laws, regulations, and license requirements concerning the use of nuclear energy for peaceful purpose
The Hyde Act is a domestic law of the US which India is not bound to. We are bound only by our own domestic laws. If the present laws cannot effectively negate the Hyde Act, we can pass a new law at the time of our choosing