I don't follow you. How would concentricity be an issue? What flat? The latter might work,Heat set inserts work wonderfully but I’d imagine maintaining concentricity would be challenging at best. Given the low torque requirement, a pressed-in insert seems good. Finding/making an insert with a flat in it is nontrivial, so maybe the insert would omit the flat? I’d probably just screw the grub screw into a slightly undersized hole and see how it works out.