The reason for a larger hole is so that the pin does not contact the sides of the hole when the hood is closed. The pin itself is about 1/2 inch, so the hole needs to be 7/8-1 inch. The top plate will be able to easily cover the hole.
I’ve run them on a few of my Stangs through the years, I just never installed them on a factory hood. All mine were done on aftermarket fiberglass or aftermarket steel cowl hoods. Never tried them inset like you did Bro… interesting look !
Probably one of the scariest videos I've seen on YT today... Ha. Nice work with it and it looks great. Always scary seeing someone drill through paint.