I'm familiar with the thread you are talking about as I have the same arrangement on an OSSA and a round barrel Bultaco.
The cylinder thread usually fails because the bike has been ridden with the nut loose.
Options are:
- Make a tap for a bigger thread, bore the hole bigger, tap the hole and make a bigger nut.
- Build up the hole with weld, bore it back to standard size and make a tap then tap the hole standard.
- Buy a ready-made aluminium insert from a specialist Spanish bike parts supplier, bore the thread out and weld in the insert.
If you want I can send a photo of what the aluminium insert repair looks like as I have just had it done.
David