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Headset striped, and not in the way you think
The bolt that feeds into the headset is striped. I have the ability to put the Allen key into the head of the bolt and spin it but it won't come out. I believe the star nut and the bolt are striped from each other. Can anyone help?

There is no hexnuts on the stem and the bolt just keeps spinning. I can feel as though there is pressure when I spin it but the bolt does not rise out of the headset when I unscrew it. Please help. I can not get rid of this bike as it is a pedicab.

Attached Files Image(s)
I would try it with upwards pressure on the bolt as you try to undo it. There are various ways this could be done. For example, you could support the handlebars in a position which keeps the front wheel off the ground. Then push down on the frame as you try to undo the bolt. Have the other bolts loose.
This might sound silly but have you tried using WD-40? Next apply some counterpressure while unscrewing the bolt. Use pliers. If you've already tried this, use an impact driver. If it still doesn't budge, drill and reverse-extract the bolt.

Let your bike shop take a look at it as well.

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