That post is for a locking steering column so it doesn't totally apply to the OP's problem.
The problem most likely is a worn key or worn tumbler assembly issue.
Your advice to use some graphite in the tumbler or another key is a good idea.
The tumbler assemblies are replaceable and are available new, but I've experienced some problems with the newer ones.
The most recent problem was the pin that holds the tumbler in the switch assembly fell out and made the new tumbler useless.
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Eric Hi Performance Automotive Service (formerly OVO or Old Volvos Only) Torrance, CA 90502 hiperformanceautoservice.com or oldvolvosonly.com
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