This should work in 11.1:
ToElementMesh[reg, "MaxBoundaryCellMeasure" -> 0.005,
"BoundaryMeshGenerator" -> {"RegionPlot",
"SamplePoints" -> 41}]["Wireframe"]
The problem is that "Coninuation" fails (which needs to be investigated) and the "RegionPlot" one does need the "SamplePoints" (think "PlotPloints"). Hope this helps.