If you haven't already, you may want to check out
www.catalinadirect.com/keel-and-pivot-pin-wear/ They recommend boring out the pivot hole and re-sleeving with 1.25 inch outside diameter stainless steel bush (which they stock see
www.catalinadirect.com/shop-by-boat/catalina-22/hull-deck/keel/pivot-assy/c-22-keel-pivot-pin-bushing/?SearchResults=1) or bigger (custom made) if necessary.
"Take the keel to a machine shop and have the hole bored out. Some shops have a machine commonly referred to as a "mag drill" or portable magnetic drilling machine. These machines have a powerful electromagnet which clamps the machine directly to the keel when energized. There is no need to hoist your keel onto the table of the milling machine.
"If there is plenty of material left for adequate strength, we have a stainless steel bushing available. It is 1.250" outside diameter (#D1908). I like the idea of having the machine shop prepare the hole so they can press the bushing into place. Epoxying the bushing in place may also be an option. The factory simply installs the bushing with a slip fit into the hole. Any of the three are probably fine."
Given how elongated your pivot hole is, you may want to epoxy the new bushing in rather than boring it out to the max and using a much fatter custom made bushing, Not sure how well epoxy would hold up given weight on the bushing and possible residual movement.
Another approach would be to take the keel to someone with the equipment (a preheat oven) and the expertise to add weld metal to partly fill the elongated hole before re-boring and sleeving.
I presume you're going to replace the pin?
Interesting to note the article suggests keel pivot wear in Catalinas is mostly due to movement while moored, rather than from lowering and raising, and suggests that re-fitting the keel so as to eliminate side to side movement is important to reducing wear.