damascus,
You can't be wrong, if it is your gun, it is your choice. Whoever gets it after you might complain, but as long as it is yours it is your choice. The wide slot illustrates my suggestion to put a "shim" in the damaged screw's slot and pein the damaged metal back against it. If the damage is just filed out, the result is a wide slot. BTY, the screw you see as a wart, looks fine to me.
Mike