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It may be an A/C drain hole, but it is not in the proper location to be from a '66 factory installation. After looking at it closer, I thought it looked too low on the tunnel, so I went out to inspect my original unit. In my San Jose built '66, the hole is indeed higher. It is not more than 2" from the top of the tunnel. I would plug it. If you were to install A/C in the car using that drain location, you would be kicking the hose constantly.
 

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Looks to me from your pic the trans tunnel sheet metal was replaced with a 65-70 Mustang-Fairlane-Falcon universal piece, the lowest location (maybe for 65) was punched and drilled but those two upper dimples are where you're supposed to center the drill bit for the 66-67 underdash add on air or upper and forward for 67 factory and 68-up all A/C. I have been reading a lot about AC lately...
 

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