Atwood used 2 different size plugs (drain hole is 1/2")
One plug used a 7/8" socket and other plug uses 15/16" socket
Plugs are nylon tapered thread so teflon tape is not needed but can be used
Plug threads do become damaged but come 2 to pak when purchased. Nylon is used due to WH tank being aluminum. Nylon is also used due to it's temp rating
And with the drain hole size it is hard enough getting crud flushed out when draining/rinsing tank. Screw a plug in with built in drain you just make drain hole size even smaller.
I turn off water supply, pressure on HOT water system, remove drain plug and then turn water supply back on and let it blast out thru drain hole. This helps remove crud from bottom of water heater.