I thought you said you wouldn't be able to install a helicoil for reasons of access and your left wrist issue?
But helicoil inserts are available in the size M8x1.00mm and in various lengths (I checked!).
If this was my job to sort out, at home, without access to professional engineering facilities, this is what I would do :-
1) If possible, I would obtain an 8 x 1.00mm thread tap, preferably a 2nd rather than a taper or plug version and run it through the thread in the block, then check with a mirror + light to see how the thread now looked. If the thread cleaned up well, I'd obtain a new bolt of the correct length and install it.
2) However, if the thread didn't clean up so well, I'd obtain a longer bolt which would then protrude through the rear of the threaded boss on the cyl. block, install it (including the tensioner spring components) and then put a locknut on the protruding thread at the rear of the boss, to allow proper tightening and prevent it loosening. (I don't think there is enough space to screw the longer bolt/setscrew in from the rear and fit the locknut at the front)
(for the uninitiated :- a bolt has a plain section then a threaded section, a setscrew has threads the full length, i.e. no plain section)
3) If however, the thread in the block looked very dubious after using the tap, I might drill out the thread, insert a bolt (it now wouldn't have to be an 8x1.00mm) from the rear through the boss, and secure the spring components with a locknut (Nyloc or similar). Ideally, the *rear of the boss* should be faced-off flat and parallel to the front block face to accept the bolt head and you might also need to relieve one or 2 flats on the bolt head a little to get it into position. Note, the coils of the tensioner spring are held in place by a bolt, not a stud.
*Rear of boss* is arrowed in red in pic:-
View attachment 487776
As regards changing the thread pitch to 8 x 1.25mm (seeing as you have a suitable tap and 8x 1.25mm bolts are readily available)?
If you take, for example, over a 10mm length of thread - an 8x1.00mm bolt would have 10 threads (obviously) and an 8x 1.25mm bolt would have 8 threads, so I'd imagine a lot of mangled threads - the 8x1.25mm tap could only correspond exactly with the existing 5th and 10th threads of the 8x1.00mm threaded hole in the block.
One thought that did occur to me was to perhaps run a 5/16" UNF tap through the 8x1.00mm threaded hole and use a 5/16"UNF bolt and nut.
5/16" = 7.94mm ; tapping drill size is 6.90mm BSI recommended, but BSI alternate size is 6.80mm. 8x1.00mm tapping drill size is also 6.80mm.
5/16" UNF has 24 threads per inch (1" = 25.4mm), 8x1.00mm has 25 threads in 25mm, or 25.4 threads in 25.4mm or 1", both threads have a 60* angle.
So, existing mm thread has 25.4 tpi, new UNF thread = 24 tpi, pretty close, might just work.
I reckon this might be a better option than to run a 8x1.25 tap through the existing thread.
But, of course, I don't know your situation as regards availability of UNF taps, bolts and nuts, maybe there's a garage that caters for classic British cars near to you? If you do opt for UNF, you might leave a note for the next person to work on your car to avoid confusion. (I always check the bolt
head markings when working on old cars

)