[Pavement Tested]

I would call another KTM dealer or contact KTM North America directly to ask them for confirmation. I don't see it being the case when a complete lock set it only like $135 last time I looked into it and as you eluded to, the keys are not chipped as far as I know.

 

[Pavement Tested]

I will add that the bolts that hold the ignition cylinder into the frame neck are shear bolts and will need to be destructively removed and replaced as the bolt heads shear off when they reach the correct torque so they can't be removed easily. High strength or permanent thread lock is also used, further complicating bolt removal.