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You could also try a remodeling cover that covers any hole you make while taking out the old valve body. This would allow you to put in a single handle faucet if you want. You can find this at Home Depot from Danco.

There's also a plastic / brass version of that stem that is interchangeable with this one. You might try that one.

The problem with the threads for the shower arms has been identified by Danco and it is being resolved as we speak.