Yes, the Nikon Z6 III is compatible with the SanDisk Extreme microSDXC UHS-I 128GB.
Nikon Z6 III has a full-size SD card slot. SanDisk Extreme microSDXC UHS-I 128GB (real write speed 130 MB/s) fits via the bundled microSD-to-SD adapter and clears this camera's standard/base recording modes (UHS Speed Class 3), but does not reach the ~250 MB/s sustained write speed this camera's manual recommends for its high frame-size/rate video modes -- those modes are CFexpress-recommended anyway.
Limitation
Standard video recording works -- 130 MB/s clears Nikon's 45 MB/s / UHS Speed Class 3 floor. Cannot sustain Nikon's high frame-size/rate 4K modes, which require an SD card benchmarking at least 250 MB/s (Nikon's own published floor, not a Speed Class rating) -- this card benchmarks 130 MB/s. The bundled microSD adapter provides physical fit only; it does not change the card's benchmarked speed.
“Nikon Z6 III's own manual states its SD/microSD card-slot speed-class requirements; this card's write speed of 130 MB/s is compared against that published floor.”
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High confidence