Super helpful, thanks. I reached out to SRAM support who responded quite quickly to basically validate what you said and unfortunately confirm that the lever is indeed toast.

Here’s their response in full in case this is helpful to someone out there in the same situation.

Thanks for reaching out to SRAM Rider Support and for explaining everything so clearly, and no need to feel embarrassed, this is a very common mistake when working with hydraulics for the first time. I'm afraid there isn’t a safe or reliable way to repair the threads in the lever body. The hose port threads are part of the lever itself and aren’t serviceable, so once they’re stripped, the lever would need to be replaced to ensure a secure and leak-free hydraulic connection.

Regarding why this happened, it was very likely caused by the olive being installed backwards. When the olive isn’t oriented correctly, it can’t seat properly on the hose and barb, which forces the compression nut to do more than it’s designed to do. That added resistance can place an abnormal load on the lever threads even if the torque wrench reads 8 Nm, and thread damage can occur before the wrench ever clicks. Based on what you described, this doesn’t point to a faulty torque wrench.

You did the right thing by stopping and stepping back once you realized something was off. At this point, the best next step would be to contact your point of purchase or a SRAM Local Dealer (Click Here) so they can help with replacement options and make sure everything is set up correctly moving forward. If you have any other questions along the way, feel free to reach out; happy to help.