Tried wd-40, liquid wrench, engine degreaser, stem socket wrench, heat, hammer and chisel. Nothing works. Cold side came off. Looks like some kind of sealant was applied. Corners of stem socket stripped.
Plumbing – Stuck bathtub stem
plumbing
Related Solutions
In one hole, and if the seat is open, out the other.
If it doesn't seal well even though you have replace the 'washer' at the end of the stem, a seat grinder will smooth the seat out. Go find a 75 year old plumber, he will have one.
An alternative valve stem packing was a rope like material - the neoprene washers you added are a substantial upgrade.
I haven't re-seated and repacked one of these in at least 15 years but your assembly looks good.
It looks like you have been wrenching on the wrong piece (the stem). You need to unscrew the entire assembly at the valve body. The body is deeper in the wall, if you shine a flashlight in there you will see where you need to unscrew it. It takes a special deep socket made just for that purpose:
The picture shows the person using a rod to turn the socket; you may need to put a pipe wrench on the socket to get it to break free. Ensure the water is shut off before you do this.
Pictures shamelessly grabbed off of the internet.
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Best Answer
I second (or third) the pipe wrench solution. However, I would add that you should be prepared for worst case scenario, which includes damaging the valve, and possible the solder that connects the piping to the valve.
Good luck.