Remove paint, weld and grind/sand into submission.
It'll be fine.
Edit; Maybe even drill a hole in stress points and weld back.
Just don't drill nilly willy as that could make it worse.
Yeah, just cut out this section of the tube and weld a new part in. Sod it, chop the frame in half and weld in a carbon rear-end. Honestly


The Explosif tubeset, in this case Columbus Max, is super strong and wafer thin, even on the seat-tube. Someone will have the technical specifications. My point is, get expert advice from someone who really knows how to manipulate steel.