For a repair in the car, pin it. I have in the past had to repair the same sort of damage, and I had someone add some metal with a welder and then I reshaped the key-way. But that was with the crank out of the motor, I suppose it could be done installed.
And seeing the amount of rust colored powder in the pics, that could also be "normal" wear. The key gets hammered and rusts away.









