I've got an adjustable track bar using the stock frame mount. Had a bear of a time getting the old stock track bar out and ended up cutting and drilling the stock bar joint out of the frame mount, resulting in the hole being egged out a little. I got the adjustable bar mounted ok and tightened down pretty good and while the XJ rides ok, this is not a long term solution. Was thinking of drilling out the egged-out hole to accept a grade 8 bolt and getting a different adjustable end for the track bar, such as a heim joint or other appropriate end joint. Anyone have any experience with this situation and the best route to go?

how much lift do you have?
personally, i would remove that bracket and either go for a new stock replacement, or even upgrade the track bar and mount with a double shear unit like rubicon express or the like. they use like a johnny joint/super flex joint.

You can weld a washer over the egged out hole.

4-inch lift and is my daily driver. Doesn't get out on the trail at all.

Which trackbar are you running? Does it use a TRE or heim/flex joint? If it has a TRE, the thread with be a different pitch than a heim.
Regardless, pick up an aftermarket double shear track bar mount to run a heim/joint. Or, ditch your trackbar and pick up the IRO double shear TB setup.

I also would opt for a dbl. shear track bar, but if money is an issue then Big David's suggestion of using the washer will work.

All good suggestions folks, I do appreciate the feedback. Sounds like the double-shear is the way to go.

I had the same isssue on mine. 4.5 lift. Although i could NOT get my stock bar out if the stock mount so I had to get the HD mount and HD trac bar from rubicon express. Had to drill a hole in the axle end for a bigger bolt (provided).

Looks really good. No issues with DW or bump steer I take it?

Thanks! Nope, no DW. I had slight bump steer but that was before i replaced my steering with all new stuff.