The increasing level of harmonics in the power grid, driven by a substantial presence of coupled inverter-based energy resources (IBRs), poses a new challenge to power grid transient stability. This paper presents the findings from experiments and analytical studies on the impact of the topological configuration of coupled IBRs on the level of power flow harmonics in a distribution grid: (i) our findings report that the impact of grid topology on harmonics is nonlinear, which is in contrast to the common perception that the power grid operates as a large linear low-pass filter for harmonics; (ii) importantly, this study highlights that the influence of the topological configuration of inverters on the reduction of system-level harmonics is more substantial than the effect of line impedance, emphasizing the significance of grid topological configuration; (iii) furthermore, the observed reduction in harmonics is attributed to a harmonic cancellation effect achieved through self-compensation by all the coupled inverters without affecting the active power flow in the power grid. These findings propose a new approach to limit the penetration of complex IBR harmonics in the power grid from a system-wide perspective. This approach significantly differs from the component-level or localized solutions used today, such as inverter control, power filtering, and transformer tap changes.