Alright, cleaned the threads on the screw. Quite a buit of material came off. See here.
Then, using this
I chased the tapped hole. Screw goes in fine, a little loose at the beginning, due to lost material, I'd assume, then gets tighter.
I wiped up the shavings with a microfiber towel, but still need to clean with carb cleaner. I picked up some M6x1.0 20mm Phillips screws while at HD, I'll run one of those through itvas well. Will probably just use one of those instead of the original, it's all covered by the covers anyway.
Once it's all cleaned out, I'll see if it holds, if not I'll look into an insert or drilling and tapping for 7mm.
Thanks to everyone. I really appreciate the advice and expertise. Once it's all done and put back together, I'll let you all know.