You don't appear to have a view on what would happen if the lugs were machined off and the rifle was fired and I assume that is one reason you have moved to the bolt handle being peened.

However, a couple of points to consider.

How far would the lugs need to be set back before the bolt handle starting acting like a lug because if the bolt handle does not act like a lug for each shot then it won't be peened.

Now if the handle was acting as a lug (due to the set back of the bolt lugs) and this peening of the bolt handle started to occur we must surely enter the area of difficulty with bolt opening and especially since the metal behind the behind the bolt handle slants very slightly forward.

Mike