You might not need to destroy those plug locks. I've had some drilled worse than that which I just gave a quick "clean" with a 1/4" cobalt bit to cut away the damage and they still work fine.
I meant to clean up the damage so the key will go in. Yours doesn't look so messed up that the first pin is damaged, but it might be or there might be metal shavings in it that's altering the bitting. Try WD-40 and rapping on the key while you turn back and forth, but you'll probably have to drill it.
Randy,If you can get the key in and it won’t turn I’d have to say the lock is ruined. You could try working it with a dental pick, trying to get any debris out of the lock and spraying it with WD-40 or any other penetrating oil to flush out an debris. We go through about 5 sets of Medeco plug locks a month. If you know the key number you can order a replacement lock. What a PITA!