A traditionally designed receiver has much going on that many welders do not understand.
The cross tube (square or round) is a torque tube that twists from the WD Bar/Trunnion WD hitch bar lever arm (moment).
That twisting is transferred to the side brackets that are bolted (some are welded to the frame rails, like the 4Runner etc.) That then lifts the TV’s rear axle and transfers that to the TV’s front axle
That cross tube is also twisted to a higher rate, unloaded and twisted the other way while driving (dynamic & cycling loading)
The why it is NOT recommended to drill/weld/etc on the cross tube. That creates stress raisers that WILL form micro cracks to propagate into cracking clean through the tube wall. Have also thought that some receivers might have the cross tube of higher grade metallurgy & possibly hardened
Hogging out the receiver pin box hole and shank hole has consequences too. Like reducing the cross section of the shank. Add that this OP’s setup is a 3” receiver box and a 2.5” reducer inside that receiver box…which am assuming allowing movement during the drive. THAT will create higher loads on the receiver pin box & shank.
Admit to having welded and/or drilled on the receiver end brackets, but after serious noodling of how the moments present themselves to that area. Tens of thousands of miles and no problems (don’t we all say that?)…
If me, I’d get a 3” shank. Or the OP can change out the 3” receiver to a 2.5” receiver. Either way he is in about the same money.
Have zero experience with 3” receivers/shanks and ask if the WD Hitch head the OP has now will fit either 2.5” or 3” shank ? Assuming it would, but not sure…