my cheap crappy tap & die sets from harbor freight came with cheap crappy surprisingly accurate thread gauges, fwiw. i recall the m10x1 and 1/8 NPT being distinct enough that i could tell the difference.
I used an M10x1.0 die to turn down the thread. Now it fits just like the VW sender.
That's great...thanks for the info. No need to shorten the nipple and the sender works as it should?Will try that before transplanting the VDO sender to the new cylinder head/motor.