SOLVED!!! We didn't want to mess with the bolt. So my mechanic (who is a magician and has many years of experience and knows these cars) had an elegant solution. He surmised that the chamfer of the bolt and countersink angle pinion washer had surface tension and rust and etc. The bolt was virtually compressed or rusted to the washer. He cut across the top and broke off the top edge of that washer, and then hit it with a hammer (marked with arrow) using the washer as a wrench. The bolt came right out.

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