Transmission stud

i would try a thread chaser or bottoming tap clean up the threads if you havent already. Mine were 7/16 as well.

Now that is an idea that I haven't thought about..that could account for the non fitting and the smaller bolt actually working.

I do know this 727 has sat for a long time and was not particularily well cared for. We did a major clean on the outside and well as a full rebuild plus a kit to bring it up to spec..then it has sat for another couple of years.

thanks
ian.