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Yeah, 3/8 bolts work just fine until they don't! I made that mistake many years ago, the 3/8 seemed to go in almost perfectly but not quite they had just a bit of drag right up to the moment they were almost tight and poof STRIPPED!
I too would pull the engine, if for no other reason then I HATE laying on my back drilling and grinding. But some folks don't mind. It would also be easier to find a welder to do the job if you can't weld cast.
It can be welded (usually) if you do, chances are you won't get it lined up perfectly for the starter to mount up. The 2 starter bolts might go in ok but the mount on the end of the starter won't fit properly. (That end bracket is probably missing and why the block broke, don't ask how I know)...