Hi Todd
I have also had the same problem where I'm not able to screw some screws out because they´re to stuck or the screw is stripped.
There is not to much to do about it than, in your case, to buy a new LCD Shield Plate for your iPhone 8.
'''Only the original home button''' will work on your phone because it has the haptic feedback home button that is linked to only the iPhone it came with, so do not replace it with some other home button.
Anyway, my suggestion is just to force the LCD shield plate out in some way for you to be able to remove the original home button.
I found an iPhone 8 LCD Shield Plate on this website, and would assume that this isn't the only place where they sell these. (https://www.fixez.com/iphone-8-lcd-shield-plate)
Hope this helps