Destroying an old regina freewheel because you are not competent enough to remove it is ridiculously wasteful. Save that method for freewheels with destroyed slots that are no longer removable otherwise.

At one time there was no choice but to take the axle or the locknut off to remove these and other splined freewheels. It ain't that hard.

I can tell by looking that the VAR tool is thicker walled than the old Phil tools. Again, most likely problem is that it's hanging up on the locknut. Other than that, nothing to do other than double check you were sent the right tool, and also that you in fact have a regina freewheel. Is the number of splines correct? Did you verify the diameter with a micrometer?