Thanks for the quick reply.
The local mechanic who looked at it said, he has never seen anything like it. I wanted to use borescope (endoscope) to confirm, but he didn't use one.
I agree with your logic thread should go bad first... WD 40 didn't help I had nothing to grab onto, and also never used a power tool to strip anything.

I am running to Sears for bolt extraction tool. Will keep you posted.

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