Some more updates and pics.
I have successfully replaced the axle on my second attempt. All I needed was an angle grinder with cutting disc of the right size to get into the hub and a chisel. Time total was about 4 hours of cutting, prying, whacking and swearing, but after I got the nut out it took roughly 20mins to have the car back on the ground.
Unfortunately, during last two weeks some other issues appeared. Exhaust rusted through and rear muffler is totally disconnected from the mid section. From what i read on fb group, Toyosports exhausts are pretty decent quality, so I got a 60mm stainless cat back for 280€ delivered, but there was obvious mistake from the seller. I paid for one, but received two full sets with a day difference... I tried to compare it to the original exhaust and it seems to line up perfectly, although it is supposed to be for MB6 not MC2.
As far as other problems go, F/L upper ball joint has a nasty clank when the suspension is fully decompressed for example on speed bumps and A/C is not working, probably just needs to be refilled.