There is a sliver of missing grain (lower left side) Anyway, yep, I always go for about 1/64" over so the hole sides get compressed slightly.
Can't tell you how many I've biffed with using a 3/8" bit and having a slight hole radius peeking out the side of a plug.
I used to locate and tap the punch to establish the four corners, mark diagonals corner to corner to establish the center point for drilling, then lay the punch back in the corner dents and hammer home. Thins were much slower then with marking the offset for the chisel from the desired center and drawing the diagonals.
