My understanding of the repair is thus:
Edge of
oversize
hole -----|
| |--- Edge of 1/4 hole required.
________v_v _______
________|_| |_|_____
Metal ^
|
Adhesive
For a systems support bracket you might get away with it, provided the fastener and bracket attach foot clamped through good metal around the hole.
For a flight control bellcrank, which would affect safety of flight if it moves slightly, let alone if it comes loose or comes off, this is unacceptable, even though there are other good attachments.
Boeing have a freezeplug method where they shrink a metallic plug into the oversize hole and then drill that. However, it's still generally mandatory to have the attaching part clamping up through good parent material around the oversize hole. (Since your oversize is 3/8 and the fastener is 1/4, a suitable washer should extend over good material.)
For a flight control I would hesitate to use a freezeplug unless the maximum loading was "low", and with a bellcrank it probably isn't. You might be ok shrinking in material like this if the structure you're attaching to is very thick, say equal to the 3/8" hole dia.
If the structure is really thick, then it's just possible that in practise the adhesive repair is adequate. However, it really shouldn't be allowed.
If the structure with the bum holes is thin, especially if it's sheet, then the adhesive repair is almost certainly a potentially lethal danger.
Even if the fastener and bellcrank attach foot are clamped through good metal around the oversize hole, the shear forces for max loading will overcome friction due to torque up (especially if the torque mostly disappears over the years), and the adhesive will be in bearing on the fastner shank. For a 1/16" thickness of adhesive, that's not acceptable. The adhesive is quite likely to crush at around about two ksi nominal bearing stress, probably less if the environment is hot and/or moist. Once it's crushed the bellcrank fitting is essentially loose, significantly affecting the control run stiffness and exposing the attachment area to unaccounted-for prying forces, which could cause static failure at high loading or start fatigue damage for every-day loads.
-RP.