According to the book ''Drills, Taps and Dies' by the British Tubal Cain, a tapping drill of 2.65 mm gives a thread engagement for M3 of 65%, so that would not be an issue.
I would be more concerned by the fact that the outside diameter of 5 BA is 3.2 mm, the pitch is different, and so is the flank angle, so by the time the 5 BA thread has been tapped out there will be a considerable amount of fresh air included when the threads mate.
I don't know how the Stuart flywheel is located and how much load the grub screw takes. Would the hybrid thread be strong enough?
George B
P.S. I keep Tubal Cain's book alongside 'Eats, Shoots and Leaves' by Lynne Truss. Well, it amuses me…
Edited By Georgineer on 04/11/2019 15:00:04