At one point the ATF said you could weld the barrel shut, weld the carrier and bolt shut and it would no longer be a machine gun. IIRC this was a method to DEWAT. (Deactivate War Trophies.) But there was attendant parperwork to keep with the weapon. (IIRC)
Anything with a third hole in an AK w/o paperwork the atf has said over and over is a machine gun. Weld them shut, its still a machine gun. use JB weld still a machine gun. The atf has stated once a machine gun always a machine gun. It sucks but they make the rules. If teh local agent says youre ok GET IT IN WRITING FROM THAT AGENT WITH ALL HIS INFO ON IT. Personally I'd torch cut that gun NOW and photograph it! Then reweld it.