Going through some paperwork I came across a short paper I wrote about 30 years ago regarding hole sizes in FEM models. It is not really needed as much today because we can use fine meshes around holes now. Back then we didn't have the luxury of fine meshes and had to limit the number of nodes due to hardware or runtime limitations. Basically it talks about using the same area for the n-sided polygon around a hole with the area based on the blueprint hole diameter.
Enjoy, Ken
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However, with quadratic elements, the difference between the hole radius and equal-area radius is usually negligible. Even a "square" hole with 8 nodes placed at the radius has an area 98.8% of the intended circle's area.
Agreed, short and to the point. Not quite as short as this one:
https://ams.org/journals/bull/1966-72-06/S0002-9904-1966-11654-3/S0002-9904-1966-11654-3.pdf