The brush or spray extension works differently in Inkscape. You can use two extensions. One is to convert dashes to line segments. The other is using the extension Pattern along path. The post immediately following this one talks about using the extension pattern along path.
Make your stitch path. Then make your circle for a cutout and convert it to a path. Put it at the start of where you want the stitches to go along.
Select the hole and then the path. Then choose Extensions > Generate from Path > Pattern along path. Set the parameters for the pattern. Choose repeated and snake.
Then choose the space between copies and the offsets. It is set in pixels per inch, with 96 pixels equaling an inch. Unfortunately, the dialog box rounds up and down to tenths so you can’t get exact scaling in an inch, which would be 5.625 pixels for an 1/8 of an inch. But you can adjust the spacing to hit the corners as you wish.
And here is one with a .065" hole spaced 5 pixels. You can break apart the resulting compound path and edit individual holes.
