Tool 639 589 01 07 (AFAIK same as tool 202 589 00 14 00) is used to remove the ignition switch bezel in the 1996-97 E300 series. I used it successfully for my '96. The '97 has a different ignition switch but I think the lock is the same. The plastic bezel should turn counter-clockwise and come out.

You do not have to have the key in the switch to remove the bezel; the key does not have to be turned to position 1 to remove the bezel. See this thread post #4 for a diagram from the FSM.

Once the bezel is out, insert the key, turn to position 1, and you should be able to use the key as a "handle" to pull the lock out of the dash, leaving the switch in place. If you have a new lock ready to go in you don't even have to disconnect the battery.

Jeremy

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"Buster" in the '95

Our all-Diesel family
1996 E300D (W210) . .338,000 miles Wife's car
2005 E320 CDI . . 113,000 miles My car
Santa Rosa population 176,762 (2022)
Total. . . . . . . . . . . . 627,762
"Oh lord won't you buy me a Mercedes Benz."
-- Janis Joplin, October 1, 1970