I recall an awkward instance of it at work, with cap-screws and 'Nyloc' nuts – the action of the insert might increase the risk of galling.
These screws were no more than M5, possibly only M3 or 4.
The assembly was encased in an annulus consisting of two flanged rubber mouldings clamped together by pairs of stainless-steel plate rings bearing on the flanges, with lots of screws and nuts. The whole thing formed a short but very thick-walled cylindrical tube open at both ends, with equatorial flanges inside and outside.
And of course the seized fasteners had to be on the inner flanges! This was only about 80 mm diameter, maybe 40 or 50mm deep from each end of the case. Not much room for hands and spanners; certainly no room to cut a few pennies' worth of screw, even if that were possible without risking damaging probably a few hundred quid's worth of specially-made casing!
I could only try tightening the nut until the screw sheared before the Allen key, which luckily it did.