Over the last forty years I have cut conservatively 50 slots or more this way in small hardened allen key screws as well as torx to create screw driver slots to remove the screws. Never a problem.
One has to get a two handed grip on the Dremel. Practice a little if there is any question. One finds out pretty fast how to guide it.
One can stack two discs to get a wider slot in a larger screw head if needed.
Applying a lot of downward force on the screw driver helps.
For torx I have other methods but I have used the thin Dremel cut off wheels.
PS: people here keep telling me I can't cut nail nicks with the dremel (or the diamond wheels of the same ilk) . . .
and yet . . . oh look here's one

. . . as if by magic.
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