And I thought that would clear up the confusion. lol
I understood Dremels to have 1/8" 3/32" and 1/16" collets in their metric equivalents 3.2mm 2.4mm & 1.6mm. Their collets are very difficult to align. As too their 3 pin mini chuck.

I have limited experience of Routers; the ones I have, have 1/4" & 8mm collets. My friend bought an AEG one last week which had a range of collets from 1/2" down to 6mm, I didn't get to see what other sizes were in the box before he magiced it away.

My first Dremel died after a long life and rather than recycle it at the community depot, I stripped the rotor out of it, removed the fan, cut the shaft just below the rotor windings, and had it ground down to fit the 8mm collet of my B&Q el cheapo router. So with that in place I get to use all my Dremel bits.

To answer the question posed in the thread title? I suggest a 1/16" ball end mill cutter. Perfect for fine detail carving in wood featured in Vcarve.

John