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Pull headlight **** fully out, then use a hook tool to pry release tab on backside of the ****. May have to turn it a little to get it in position where the tang is.
Push on the clip on the back of the **** (my **** is epoxied on the shaft because it used to fall off -- that's the yellow stuff):
Second way: Take off the dash pad. Press inward on the button with the spring that looks like the head of a nail on the side of the headlight switch (the shaft comes out when you do this -- this method goes WAY back to the 1950s at least):
Cliff nailed it. Sometimes the clips break, and previous owners glue them onto the shaft. Then the pad comes off....which is fortunately, a 10 minute job on an early C4.