Manual says to use drill bits as gauge but numbers?

A #52 bit is .0635" which is 1 thousandth of a inch larger than a 1/16".
A #38 bit is .1015" which is .0079 (almost 8 thousands) smaller than 7/64" .
Are you setting float or choke pull off? Either way, I wouldn't worry about a few thousands of an inch.

Exactly.

Just get it in the ball park, then you may need to adjust a notch or two rich or lean, depending on how it runs... Then your "gauge point" is no longer the target, but a step in the right direction. Use it to zero in on the bulls-eye....