KDP Musings, FWIW
When I covered the KDP on mine, the pin was recessed about 1/16" to 1/8" below the surface of the gear case cover. Theoretically, I could have peened the cover's metal around the top of the pin to resist outward motion. It's doubtful that I could have peened enough of the aluminum around the hole into the recess to make a difference. Then again, I might have just succeeded in causing the aluminum to break or chip, not flow.
The pin is hard steel. Over time, the steel pin would probably push the peened aluminum back and fall out anyway. It just might have taken longer.
I'd (safely) speculate that the KDP is a problem only in engines where the KDP hole in the cast iron block is slightly large, but within spec, and where the pin is slightly small, but also within spec.
I suspect that there may be some correlation between heat-cool cycles that contributes to the pin falling out, all else being equal. The steel pin and cast iron block will expand at different rates when they warm up. I'd speculate that engines that are started (warmed up) and stopped (cooled) frequently (like mine) may be more likely to have the problem. (Observations?)
This reminds me of a defect in the mid-1970s Volkswagen Type II engines. There, three steel pins were pressed into the magnesium-aluminum alloy block to seal off the oil pressure gallery after machnining. At 74K to 85K miles, one press-pin would fall out, causing massive engine failure. (The pin that fell out did not cause the oil pressure idiot light to immediately illuminate, assuring max shredding. ) Engines used in frequent heat-cool cycles, like a daily commute, failed sooner. In the VW case, the quick fix, on rebuild, was to replace the press pin with a threaded pin. The true repair was to replace all three. But I digress.