Todays update: I used the chaser to clean the thread. Some more metal shavings came out. I put in the new plug in and tightened it up slowly and carefully to about 12 lb ft torque and then it started to spin again.
Considering the amount of thread you pulled out I'm not surprised.
You can try tapping with the same size bolt but different thread, but it's probably too far gone for that.
If you already have a tap that size it wouldn't hurt to try, if not I wouldn't bother.
After that your next step is either drill/tap the next size up or helicoil.
Next size up will require a different drain plug.
Either will work.
It should be pretty obvious which I prefer, but the choice is yours.
If you can't/don't want to do one of those you'll have to replace the pan.
Jamming a rubber plug in there is a temp solution IMO.
Just saying.
The threads in the pan are toast.
Dan
We agree!