Its his brand new crate motor, still on the stand
Is the bolt broken flush with the block surface? does it protrude or is it deep in the block,
what grade was the bolt that was used, if its as soft as you say I would go ahead and try the easy out if the bolt is of such poor quality, easy outs break when trying to remove ancient stuck bolts, not brand spanking new cheap bolts in clean threads.
Make sure you understand or know the quality of the bolts you buy in the future - "steel" isnt good enough by any measure. Exhaust manifold bolts are going to get heat cycled alot, I would never do anything less than grade 5, though I too would lean towards grade 8 for this application.
It might also be wise to get a bottoming tap in the correct thread pitch and chase all the threads - clean threads make life a ton easier.