:imo:It isn't really a cleanout hole.
There are two common ways to connect the nipple hole with the bore of the gun.
One used by many military guns and some guns with patent breeches is to drill the hole at a angle so that it intersects the bore or the powder chamber inside of the patent breech and the nipple hole. Guns using this method usually do not have (or need) the "cleanout plug screw) because there is no extra hole connecting the bore with the outside world.
If this method is used with a patent breech, it can be drilled from the powder chamber to the nipple hole.
If the gun does not have a seperate breech, it us usually drilled from the nipple hole to the guns bore.
This is fine on the military guns which have large diameter nipple threads, but is not easily done when the nipple thread is just a 1/4 thread.
Another way is to drill a hole straight thru the side of the breech block to the powder chamber, or thru the drum and then drill and thread the nipple hole so that it intersects this smaller hole.
If this method is used, something has to plug up the connecting hole at the outer end, and the easiest way to do this is to thread it and install a screw.
A third way of connecting the guns bore with the nipple hole is to drill the small hole all the way thru the barrel from the side opposite the nipple to the nipple hole. This hole is then plugged on the left side with a screw or a brazed in plug.
The only reason for using this design IMO is it doesn't "clutter" up the area around the nipple with unattractive screw heads.
As many have found, this "cleanout hole" can be handy. If you dry-load your gun, it is real handy to be able to just remove the screw and dribble enough powder into the barrel thru the hole to fire the ball out. If you use it for that, be sure and reinstall the screw firmly. Failing to retighten the screw can result in the unexpected loss of the screw, not to mention the irritated guy 2 benches down with a bloody knot forming on the side of his head. ::
Although a lot of people use the hole when they are cleaning their gun, I've found it unnecessary. Just removing the nipple and pumping lots of water thru the channel by placing the breech of the barrel in a bucket of water and using the cleaning rod/jag as a piston flushes all of the fouling out of this area.