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I would avoid getting anything in the tip of the O2 sensor, although it may not be ruined if you got some in there. It sounds like the bung was made from a softer material and it galled when the O2 sensor was installed. A little bit of anti-seize should help ease removal when the time comes too.
I'm pretty sure I've seen a repair kit available for this,,,,basically just a 1/4 washer with the proper threads. It welds onto the damaged area. Sorry I can't provide anything more but I know I've seen this...
Roger
Rezvani's Latest Post-Apocalyptic Monster Is a Ford F-150 Raptor Underneath
Slideshow: Called the Fortress, the 850-horsepower pickup combines Raptor underpinnings with military-inspired features, survival equipment, and a starting price of $285,000.