Yes, those bolts are shear bolts. The heads break off when you install them.
I use a chisel and a small hammer to turn them out. Lefty loosey. When you install the new lock cylinder, make sure it is lined up properly because you only get one shot with those shear bolts. I usually snug them up without breaking the heads and make sure the lock cylinder is lined up properly, then finish tightening until they snap.
I have never disconnected the battery or the airbag but I suppose it's not a bad idea. Don't want a screwdriver sticking out of the side of your head.