Once the red loctite is melted, the screw should be "easy" to remove...
Sometimes with the sight screws, I thought the head was damaged, but it was just the loctite was so hard that it gave the sensation that the allen wrench was "not grabbing" the screw head...
I would heat the screw, soften the loctite, and go from there..
Before drilling it out, I would try with different allen wrenches to see if you can take it out...
I like John's idea of grinding an old screwdriver...
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