Ok, 3/8 drill bit and a #6 easy out did the trick. I didnt even come close to drilling through the plug. I picked up a plug at the dealer and theyve changed to a new plug which has a nice big head on it.
Couple of last questions though,

What is the spring and hollow bullett looking thing in the drain plug and what is its function? I didnt expect that.

How much blue fluid should it take to refill it?? I only put about 1 and 1/3 quarts to fill. Not much came out when I emptied it but I figured it was low because the output shaft seal was leaking, which I replaced(41$ dealer) Didnt seem like much going in.

Thanks to everyone for you help.