Baron, Tim.
Thanks for your thoughts.

Common sense says ER collets. Tool gripped in collet. Shank held sensibly, in the quill.
I think MT collets will need too much drawbar pressure, for happy releasings.
My first mini mill was MT3. I learned to
sensibly , clunk the shank into the quill. Using the drawbar to retain, "finger" tight, only.
The ER32 was a little oversize, I thought. It was occasionally used in the mini lathe.
My second Chester Conquest was modded to R8, during commissioning.
David D