I've never been in love with the idea of using wood screws for a graphite neck (maybe I'm just being pedantic on that one) so I've always gone the stainless steel threaded inserts and matching stainless steel machine screw route. I've never done an A/B so I can't say for sure that there's an improvement as a result, but since I've put in the work to have inserts I'll allow my brain the placebo to be convinced that its an improvement
No, you're right to think that- wood screws are completely inappropriate for carbon fiber or graphite necks. They should never, ever be used.
Inserts are the only appropriate option. You can also drill and tap the neck (if it has a solid cross-section, which most don't) and use machine screws.
Self-tapping, tapered wood screws should not, not not be used in carbon fiber.
