Upon first encounter with a worn cover, I had thought a sleeve bushing was the best solution. The cutting head needs to be a pretty long machining rod to reach all the surfaces, which leads to a support of the cutting bit head issue. Normally, to make a hole bigger, I use the existing hole as a pilot surface to hold the cutting head/reamer. But, with an oblong hole, keeping it centered might be a challenge, particularly when you reach in from the end and get near the chain tunnel.
Ironically, it would be easier to bore the hole bigger for a bushing on a cover that doesn't actually need it.
I couldn't find any off the shelf tooling to bore a hole that deep, either. But, I might not be looking in the right place. I'm just an amature machinist. Later I thought of the set screw possibility. But, I'd rather have a repair that was invisible from outside the motor.
When I last addressed the worn one, a new cover kit was still available from Honda. So, I used that instead of reworking worn ones. I also bought a couple 77-78 covers off eBay for my fleet. So, doing a refurb cover went on the back burner.
Cheers,