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I seem to have found a nail buried in the blank. There was no sign of it on either face or edge of the original piece of wood, so the tree had grown around it after it was put there. I will need to dig it out and see if it has ruined the blank for the project. The best way I have found for removing nails buried in the wood is to make a plunging cut straight in with a parting tool on each side of the nail, leaving a raised ridge of wood.
Photo #9: Grooves cut on each side of nail Photo #10: Ridge chopped out around nail
Once the ridge is formed I chop out a bit of it on each side of the nail with a bench chisel. That usually leaves enough of the nail exposed to grab with a pair of pliers. On this one the nail was at an angle so that when I plunged the inner side groove I nicked the nail shaft further down. When I attempted to pull the nail with the pliers it snapped off, leaving me back where I started. I repeated the plunge cut on the outside of the nail and found the head of the nail.
Photo #11: No wonder it wouldn't pull out Photo #12: Got it!