Question about making a threaded hole using hole wizard.

I know how to make a threaded hole using hole wizard. My question is why when I make a 3/8-16 UNC - 2B hole and the diameter of the hole that gets cut into the part is .3125. Is that suppose to be the min Diameter when the min diamter is suppose to be .307. Also if that is not suppose to be the min diameter then what is it suppose to be. I know i can just change the dimension but i was hoping to just be able to click and autmatically make the hole.

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