There is no problem with converting the 12v fixture to a 120V, with the transformer being by-passed and installation of a GFI on the circuit. I would not convert in the other direction though as 12V wire is larger than 120V wire, because you would get voltage drop in the 12V application that the larger wire would limit (to a point), causing the light to be somewhat dimmed. And of course the hassle of having to add/mount a transformer to the circuit.
You can get LED conversion bulbs in both 12V and 120V. If you don't like the way the transformer is "clunking" when you turn it on, simply by-pass it, GFI it, and begin to use the 120V bulb. I have done dozens of these conversions with no problems. Now having said that, there are somethings to look at when changing/converting the bulb on ANY "old" fixture when you plan to continue using. Some older fixtures can develop leaks at the point where the cord enters the fixture. These problems are non-voltage specific. Meaning whatever you decide, you should still check for these, unless you decide to change the fixture too. In which case you assume the new fixture won't leak. (But) I would still monitor any fixture the first few heat cycles.
There is a way to test the existing cord at the time of replacement. Or, if you are uncomfortable with holding the fixture under water while the light is on to check the cord connection for bubbles, you can always reinstall the fixture and monitor the first couple of uses to see if you begin to accumulate water inside the fixture.
Here's how to check:
When the light is turned on, you begin to generate heat and pressure inside the fixture, and yes, even with the LED, it just takes longer. if there is a problem with the seal at the cord connection, you will begin to see small bubbles escaping from between the cord and the grommet. Then when the light is turned off and the fixture begins to cool, a vacuum develops in the fixture and will begin to pull water into the fixture through the compromised seal.
Also, inspect your existing fixture if you plan to continue using it. You are looking for rust or corrosion either on the exterior fixture wall itself, or on the back side of the lens gasket sealing surface. I have experienced more corrosion developing under stickers that are placed on the fixture, so, consider taking these off to inspect under them. If the stickers have important info on them, take pictures of them before removing. Also, replacing the lens gasket should be done when you disassemble the lens from the fixture.
Note: Pentair recommends using their LED specific lens gasket (silicone based) if using LED. part# 79101601Z for the 8 3/8" lens.