I have seen this kind of repair before. The edges of the bores can corrode, causing leaks. An insert like this can save the block or head. IMHO the bores should not be closed complete, but a bit smaller diameter should be ok. They should be flush though. From factory the bores were 6 mm.
My drill press is a bit unusual I guess, as it has a sliding vice installed, which can be replaced by a flat plate. I bought it surplus from the Swiss Air Force in about 1985. I has done very good services in all the years. I think it's 60 years old or more. The manufacturer was MOSER AG, Heusser was the vendor. I did grind the rockers by up-down movement against the rubber band. At one time I made a new trottle shaft for a Zenith carburettor and did cut the slot for the butterfly on the drill press, moving the vice by hand very carefully. The tools behind the drill press are back up tools. The everyday toolbox is on a trolly.
Regards Karl