Absolutely do not try to pound the thing out!! You’ll destroy the frame.
I’ve never done it, but I’ve heard of guys using either the tip of an Exacto knife blade or a really thin feeler gauge (presumably cut down) to walk the pin around to the correct orientation.
An Exacto blade looks too thick to me, but I’d think you could thin it with a stone or some wet-and-dry paper. Also try to make the blade edge a little ragged to help grab the pin rather than slide on it.
If all else fails, you can certainly drill out the mag release. Just drill a hole deep enough to destroy the pin’s spring and let the pin fall backwards. I don’t how hard the mag release is, but I’d use a sharp new drill if I had to do this. I’d also use a drill press.
I’ve been told that the folks at SIG do this by feeding the drill through the mag well bottom. Seems to me this’d require depressing the mag release at the same time to get access to the part you want to drill.
Anyway, you’ll then have to replace the mag release, spring and (probably) the pin.
Good luck!!