Success!
I started with a 16mm socket (the 17mm was a tight fit) and tapped it into the tube very carefully using lots of lube. It got slightly stuck a few times but could easily be removed with a ratchet rotating counterclockwise. Once the 16mm socket was in past the dimples I used a wide brass punch to flatten the dimples as much as possible using the 16mm socket as an "anvil". Then I repeated the whole process with the 17mm socket. When I was done the dimples were still very slightly protruding into the mag tube. The cheap orange plastic follower that came with the mag extension was still hanging up on the dimples, but I changed to a Type 1 S&J green follower and it works perfectly. I can't see any damage to the finish on the outside of the tube. Hard to tell on the inside, but no noticeable damage. The type 1 follower is significantly longer than the little orange cup follower that came with the extension, so I can only just fit 5 rounds of 2 3/4". 5 rounds of 3" would not fit.
I'm much happier with this method than drilling 2 holes in the mag tube.
I cut the spring to 22.5" prior to installation. After installing it several times I checked the spring length and it was sitting right at 22".
Thanks again to everyone for their helpful guidance!
The only other mods so far are an S&J jumbo safety and an aluminum hand stop at the front of the Magpul forend. I hope to shoot it for the first time tomorrow. Not sure how I am going to like the birdshead grip, it may be getting a full stock soon.