My recollection of this fault on Disco IIs was that the barrel will need to be replaced. We had a few rejigged by a locksmith, but the repair didn't last.
A hammer and chisel is the way to undo those bolts, but you don't have to cut the heads off. A small chisel can be utilised to undo the bolts.
You can remove the electrical switch from the rear of the barrel and turn it with a screwdriver to start the engine, but this won't unlock the steering.


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