Thanks for the advice everyone! I finally managed to get the key loose, unfortunately, the red level trick did not work. But once I removed the covers, a few judiciously applied mallet taps freed the stuck key. No Air Bag Deployment to speak of
Appearently, it was a lot of metal filings inside the assembly which caused the jam. The lock button and red level were functioning as expected but the center post was just not retracting as needed to free the key.
I'm not sure it helped, but I used gun solvent to clean the mechanism, then a teflon based lubricant to re-oil the lock. Because of the metal filing problem I decided against graphite for the near future.
Thanks Again, and remember, a little hammer never hurt. . .