DO NOT TURN THE SPIGOT thinking it will unscrew. You will have a nightmare if you break the water line connection. Try the double vice grips approach. The set screw is not hardened steel and it will scrape up the lower bib threads but not that badly. The major concern here is the flat end of the spigot where the hose washer will seat. As long as it is not damaged you shouldn't have any problems with leaks.
I removed both of mine by drilling out the set screws from underneath. I accidentally drilled into the bib threads. But the small area I messed up had no effect whatsoever on the sealing surface. Also, Amazon sells a spigot thread cleaner for $18. These threads can get corroded pretty badly over time.
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