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The bottom line is that the damn hole is too small. You don't want to sand the peg as then it may not peg as snuggly into the arms or other peg holes.

Get a nice and sharp 13/64 (or 5mm) drill bit and hand drill the hole out.




About midway through you may need to use some pliers or hand drill as the going gets tough. After a small amount of plastic was removed, I just rotated the bit back and forth with a little bit of a wiggle to remove any remaining burrs I created and to smooth out the hole.



Be careful of the screw at the bottom of the hole as the bit likes to catch on it.

Now the shield slides in and out with no issues and still pegs onto the arms nice and snug. The hole doesn't even look like it's been modded.



I didn't dare peg it in this deep before the mod.




Because the shield clips to the canopy, it opens when lifted and the peg slides right back in when closed.



Enjoy your toy working as designed