Is stainless insert ok to use to re-thread on aluminum?

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I was replacing seals and o-rings on my yamaha outboard 225. I used the wrong thread sealant (red) to replace the bearing carrier bolts. M 8 x 1.25. I pinched the o-ring and had to take it apart again. When I did I apparently damaged the threads on one hole. There are no threads left. Is the stainless insert going to react with the aluminum or is there a better way to rethread the hole? Thanks for any advice, Alan
 
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