It can be fixed, like most anything else.

But the safety factor is there staring you in the face,,quite literally..

I've seen some fixed with a bulge/ring right in front of the chamber. After the repair you could not see the old damage.
That's a testament to the skill of the 'smith.

But it disregards the basic idea of wether it's just a good idea to do in the first place dealing with overstressed steel and high pressure.

Kind of like fixing a broken step ladder so you can't see where it was damaged.
Might hold! Looks good anyway. Try it out...

Lots of bbls w/full ring bulges have been 'fixed' with no problems I'm sure. Tube steel strength, thickness, orig damage, where along the tube the damage is,,they all have something to do with it.
The 20ga runs at higher breech pressures than a 12ga,,something else to take into account.
..also the fact that you've probably grown to like the eyes and fingers you have.

At 6" out from the breech, I'd look at it as a sleeve project gun back to 20ga or maybe 28 if the frame is small enough.

A bulge near the muzzle would be a different situation.
I'd feel more comfortable with a fix out there and it would be much easier with the thinner tube wall and that you can flex the tubes apart somewhat to work all around the circumference that way.

The DR idea is a thought too if you want to get into that.
JMO.
Alot depends on the asking price for the beauty!

Projects,projects,,projects..