Looks like the wear is in the frame eye.
OPTION 1; It there is plenty of meat drill out both frame bracket and kick stand to accept a larger diameter bolt.
OPTION 2; As long as there is enough meat and only the frame bracket is worn, slowly drill it out until you end up with a round hole or close to round hole and fit the hole with a steel bushing that has an inner hole same as bolt size. Try to get a snug fit but a sliding fit as long as there is no play is fine. Coat both hole and outside of bushing with Loctite's green sleeve and bearing set. Wait a few minutes, wipe away any excess and reassemble. BTW green Loctite will fill a void up to 0.020" securely.