$64,000 question is whether or not the post is hardened. If it isn’t drilling out should be straightforward. If it is you may have no option other than making an M8 bolt / stud to suit. As the hole is tapered from 10 to 8 mm If you decide to use a stud it might be worth making it stepped to exploit the larger part at the bottom of the hole for a stronger stud.
If you do decide to work on the tool post best practice is generally considered to counter bore a suitable diameter both ends to a depth of around 1/4″. Bottom counterbore ensures that the post isn’t seating only at the centre due to the slide surface not being perfectly flat. The cast iron does tend to rise around any tapped holes under the influence of many stud/bolt tightenings over the years leaving slightly conical distortion. Ideally the tool post contact area should be well out towards the edge giving the most leverage against turning. On a Myford I imagine a circular contact area approaching 3/4 inch wide should be ample. The counterbore at the bottom allows the stud to be made with a reasonably wide rim at the end both the thread giving a more positive bolt down than simply running to the end of the thread. Allegedly this also reduces the cast iron rising around the thread tendencies. I’m unconvinced.
At the top end best practice is considered to be using a thick top hat shaped spacer/washer a nice but free fit in both counterbore and on the stud. The washer / spacer actually locates the tool post the hole in the middle having significant clearance around the stud. The idea being to ensure clean clamping off the surfaces of the tool post with no possibility of the stud binding in the middle.
It’s all bait inspector meticulous really. Having had to sort out ill behaved tool post in the past for other folk. A frustrating exercise. I follow the rules for my own machines to make sure I don’t have trouble. But I’ve little doubt that careful workmanship with a simpler approach will, almost always, work just fine.
Clive