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Yes, it's for the chain guard, but normally, I don't think it's threaded. The nut for the M6 bolt that goes through it is usually welded to the chain guard.
Previous owner made some cuts and additions to the frame, so it's possible he may have threaded the hole.
I was planning to use that hole as an attachment point for a swingarm mounted rear fender, and wanted to drill & tap a hole on the right hand side to match.