Are you sure you need 128 of these blocks? Perhaps they will be cut into smaller pieces, combining light and dark, and you will only need half as many?
It is certainly not possible to get all 128 from 2 5/8 yards, which is only 94.5". You can get at most 13 strips that are 7.25" wide, and each strip will yield only 5 squares, for a total of 65 squares. (Even if your fabric had a full 44 usable inches, you would only get 6 squares per strip, for a total of 78 squares.)