2000 V70 SE, 289K miles, B5244S, AW-55, Denso, N/A

Follow up,

This Matthews link proved to be very helpful:
https://www.matthewsvolvosite.com/forums/viewtopic.php?t=22911&start=10

Key words in the above posting's 20 Nov 2012 comments (see also the photos):
"Drill out the small port beside the shift cable interlock (can be done in the car if you cannot release the cable), this will release a spring and a metal pin. YOU MUST REMOVE THIS PIN TO FIX THE LOCK MECANISM, as a broken slider will keep jamming it in the guillotine."

On my car's lock housing, I drilled out the cap covering this small port referred to above, and removed the hardened steel pin and spring that was jamming the entire lock mechanism.

The steering wheel lock is now non-functional (which is OK with me). Otherwise, every thing works as it should; ignition key turns freely through all positions, car starts, and shifter unlocks once car is started.

I didn't use Volvo security bolts to re-mount the lock housing to the steering column. Instead, M8 x 15mm length allen-head setscrew bolts worked satisfactorily.

For sure, saved a tow to the dealer or a trip to the locksmith.

Safety caution: Disconnect the battery before starting this work. You'll be working directly around the steering wheel airbag. When job was finished and battery reconnected, SRS functions on startup were all OK (SRS light illuminated, the system cycled, then SRS light went off).

I went through this several years ago on my 2003 V70. As I recall I had to turn the key to position I or II in order to allow the trans lock cable to be (easily) disconnected. But if you can’t turn the key…….?
You may have to try removing the flat plate from the lock assembly and shake out any broken fragments from inside before you can get the key to turn. Actually, if you were to do that, it might just solve your whole problem, cancelling the need for a locksmith.

I have no idea what might be involved with disconnecting the cable at the shifter, allowing slack in the cable so that it can be removed from the lock assembly. I think I’d go for removing the flat plate at this point. It’s going to have to be opened up anyway either by you or someone else. You do need to leave enough of the aluminum casting around the edge of the plate in order to peen it back down around the edge of the plate when reassembling.