I never thought I'd receive the kind of response I have, so quickly. Thank you to everyone who's attempting to help.
One of the solutions we tried previously, was to buy a 1/2" diameter carriage bolt, insert it through the opening and just tighten it down with a washer and nut but the head of the carriage bolt protrudes by a millimeter or two past the opening closest to the engine and interferes with the kickstand.
The pedal arm where the pedal screws into is only about 1/2" deep; it's a very hard steel. I'm hoping a 1/2" depth is enough to hold an insert. Yes, the male thread is also damaged. The crank and arm are one piece and it's on the right side. Although this moped is a 1977 Puch Maxi, I thought the thread size would be in inches because my son ordered a replacement pedal a while ago and the size was 9/16ths.