Update: the 3/8" collet arrived today and unfortunately took too much pressure and cracked when tightening (bummer, since I looked up the minimum diameter a 3/8" collet is supposed to clamp down to before ordering). I feel like this is always my luck haha 
The idea does work though with the indicator! Showing it mounted in the collet with router unplugged 
Anybody here have a lathe and want to turn a custom dial indicator plunger cap with 1/4" reduced shank?
M7.4 x 0.5 thread I believe.
Ordered the Elaire collet since they’re supposed to have a good rep.
They do produce quality collets, I have a full metric and imperial set.
I’m sure they will help you out. The amount of meat available is probably why Makita went split. Also ive noticed that 3/8 - 8mm take a decent amount more force to secure the tool than smaller shanks.
I couldn’t find an M7.4 x 0.5 bottoming tap, only a tapered tap for pen turning (ouf of stock), so if anyone has a lathe and can do single point metric threading, I’d be much appreciated if you can help out with this project. 
Update: unfortunately Elaire isn’t going to take care of the situation. Super bummed about that.
Here is a drawing we did of the dial indicator plunger cap that will work with a 3/8" collet. Side note: the M7.4 thread is only for Mitutoyos; it turns out ours is a much more common M8 x 0.5 thread.
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