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I also don't use a bit smaller than the 1 1/8th unless clearence is tight.

Do you nail plate everyone of those holes when drilled through a 3 1/2" stud or are the inspectors in your area just not aware of 300.4(A)(1)?

If your aim is dead center the largest hole you could have is 1" [Linked Image]

Bob Badger
Construction & Maintenance Electrician
Massachusetts