How bad did I screw up

A few things come to mind.
  1. How much did you pay for the block
  2. Will any repair be suitable
  3. How much would it cost to repair professionally
  4. Is that more than another block

I like the stud idea.
If the area behind the stud has significant material that you could drill it deeper even if you go into the water jacket (SBM have water pump bolts that go into the water jacket, they need sealer but no big deal)

If it was me and it was cost effective I would have it professionally repaired.