PO Drilled a large hole in a load bearing beam
Determining if the drill hole weakens the beam beyond serviceability would require site-specific calculations, like how close to its load and span limit it is.

If it fails in the future, by cracking and sagging or collapsing, it will do so under heavy load, which is exactly when you don't want it to fail.

The floor will be on, and no-one will remember there is a slightly weak spot at that point.

For peace of mind, fit the bandage you've shown. It's a quick easy fix, and good for the long term performance of the building.

I'd be inclined to fit a much longer bandage, with two sets of through bolts far apart on each side of the fault hole, and perhaps use a 1/4" x 6" steel plate rather than wood.