Rounded edges on nipples, and rounded off screw slots have the same cause; the driver/wrench was allowed to slip off the work.
So the removal of nipples with worn shoulders and screws with worn slots can be handled the same way. Use a short nipple wrench or screwdriver blade. Clamp it in the chuck of a drill press. Do not turn on the power. Clamp the work (suitably padded) in the drill press vise and bring the tool down onto the nipple or screw. Hold the chuck down with the drill press handle and turn the chuck by hand, working it back and forth.
If the screw or nipple doesn't respond to that treatment, especially after soaking in a penetrant, give up and drill the thing out.
Jim