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To me it looks like your adapter / key has stripped so that it has left its cookie cutter part into the groove of the bolt. Before drilling the bolt itself not to mention welding (which will ruin the wheel) I would suggest you do all you can to pry that cookie cutter part out of the groove and then try to open the bolt again with a new adapter. Personally I would probably take my Dremel grinder and try to cut the cookie cutter into pieces which I could then pry out with an o-ring pick tool.
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