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The cam is very hard metal and it would be difficult to damage. I would guess that it would be easier to damage the sprocket.
It would be about impossible to reset the sprocket with the belt tensioned and with the key in place - unless force was used.
I would remove the belt, the sprocket and look at the so called damage to the cam. I am sure that an engineering shop would be able to re-cut (slightly) enlarge the groove on the cam that holds the key and also then to cut the groove in the cam. A larger key will have to be made from appropriate hard metal to fit the larger groove in the cam and the sprocket.
Selling the vehicle is a no-no and 5000 for a new head is also rediculous. If there is any damage I am sure that a good engineer / fitter / turner would be able to do the repairs.
Get another mechanic
Good luck
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1983 944 RHD Original. Uses all my spare cash!
1947 Morris Sold
1972 Benz Sold
1975 Benz Sold
1976 Benz Sold
1977 Benz Sold
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