I used brad-point bits for the first few builds, and a Forstner for the last one. Forstner (slowly) is definitely the way to go.
I used a 1/16" bit to drill a pilot, and used the pilot hole to guide the Forstner's tip.
The five pots I used all required a 3/8" mounting hole, even though they were from three different manufacturers. The two toggle switches wanted 5/16" holes. I didn't have a Forstner for that, so I used a brad point bit. It worked fine, but even going slowly there was a small amount of tear-out at the end.
Also...I have found the best plan is to drill from the TOP, down into the cavity. It might seem logical and be tempting to drill from inside the cavity toward the top, but don't do it. There is a lot more tearing/chipping as the bit exits the other side than there is as the bit first enters the wood.