If you've had the edge of the hole glowing red already, you will probably have trouble getting even a new bit to bite into that work hardened edge. When you drill stainless, every singe rotation of the bit needs to be making slivers or chips of metal. You were going way to fast and not pushing hard enough. A conduit or knockout punch has the benefit of making the cut well outside of the work hardened edge. The finished hole side needs to be 1-1/4" but be aware that you need a radio punch which is sized to cut that exact size. NOT a conduit punch.