Okay but as a shop, what would you charge to put the new head on, and presumably clean it out since it is likely brought in with nothing done yet? I figure that's at least a $450 service with parts, right? The mower isn't worth more than that, is a (roughly) circa 1999 Scotts aka Murray, which works fine besides the engine but isn't long term investment worthy. A new head at $190-ish is about the limit. If the other head also needed replaced, it would blow the budget to replace them both.
Grinding on the cast iron valve guide? I'd just put a groove in it for peening around that, to have some purchase on it, or a dimple for a set screw. It looks steel (shiny silver), doesn't look like it would be easy to weaken it. If loctite and staking it, then a set screw doesn't keep it still, I may find some welder to do that. I think the main issue with a set screw will be whether the loctite threadlocker stays set up at the head temperature. It's rated for 450F but since this is a side load, might not slip without it doing its job.
I found yet another alternative which is a machined washer that sits over the casting, under the spring. Here's a video example: