If you are derating wire due to conduit fill(example - 4/0 derated to 3/0 ampacity) should the circuit breaker be sized to protect the new derated amapacity of the 4/0?
The derated ampacity cannot exceed the overcurrent protection. So, you either have to downsize the breaker or upsize the cable. Normally, it's the latter since the original breaker size is chosen for a reason, but using a smaller breaker is OK if circumstances allow.
