Mike –
With great respect I think you may have mis-gauged the thread, for as you say 25tpi doesn't match any standard.
I think it is most likely 1/2 " X 26tpi BS Brass, whose tapping-drill size is very close to the core diameter you quote.
You could try the dodges others suggest, but I would make a test-gauge by threading a short piece of brass (or use a 1/2 " BSB fitting if available) and carefully try that. The reduction in diameter suggests it was not cut right through for some reason, perhaps to create a taper-thread effect.
If it actually is 25tpi, it is an oddity indeed.
'
You also ask the holes' purpose.
I don't know the engine but if it's a vertical the holes may be for tallow-cup lubricators. If so, I would expect smaller holes in the cylinders, close to the ends, for drain-cocks. If a horizontal then they very likely are for drain-cocks. Those are the outer end covers: what equivalents exist in the crank-end covers
I consider it wise, indeed normal practice, to fit drains "even" with slide-valves, but as I say I don't know this particular engine's design.
Whilst it is possible the water might lift the valve off its seat sufficiently to relieve the pressure, there is no guarantee it will do so, and the engine still has the problem of disposing of the water.