I decided yesterday to just go with the Time-Sert and wouldn't you know it, the kit for the 12x1.25 along with the tap guide is on a national backorder. Nothing on Amazon, called east coast distributor and nothing. Will contact Time-Sert today and see what gives. This knuckle rebuild will never end.
I used a Time-Sert on my '86 FJ60 knuckle. I still have the kit and three inserts. You're welcome to borrow the kit and use one of the three inserts. I can mail it to you this afternoon. PM me to get this going.
So here is the rest of the story. @4Cruisers was kind enough to send me his Time-Sert kit. Before it arrived I realized that the "easiest" way to install the insert was to pull the knuckle and do the work on a bench. When I started the knuckle rebuild back in June, (it was my first time) it seems like it took a couple of days to get things apart. This time it took 40 minutes. The first step is to drill out the damaged threads with supplied drill bit. Didn't have a drill press, and my hand drill was hard to control so I used a large tap wrench and slowly hand drilled it out. Next step, cutting the step, was done with a smaller tap wrench as was cutting the treads. The final task is the installing the insert. If you do this, put plenty of oil on the installation tool. I didn't and the insert got stuck on the tool. The second attempt worked like a charm. The new Toyota brake caliper bolts fit perfectly.
And after three months of sitting on stands, I went for a drive.