The dowels probably got pushed into contact with the block, the rear main bearing cap, or both. Now the concern is whether or not the block or cap has been damaged. Is the engine out of the vehicle? It's extremely difficult to remove a crankshaft with the block in the frame. The suggestion about grinding through the surface hardening on the dowel is a good one if it's not hardened all the way through. That's what we do when installing scope mounts on a hardened rifle receiver like an 03 Springfield. It would also be possible to anneal the end of the pin with an acetylene torch flame, but that might damage the rear oil seal.
Jerry