Toller wrote:
I am using some coat pegs that measure 0.493". That is a pretty
sloppy
fit in a 0.500" hole, but other than hoping I can find an undersized
drill bit, I am not sure what to do about it.

Don't sweat the petty stuff and don't pet the sweaty stuff.

Drill 17/32" dia holes and use epoxy.

Lew