I often have a hard time getting in and out my key to the ignition. Should I lubricate it? If so I have a silicone lubricant, WD40 or synthetic motor oil. which one would be best to use for this purpose if lubrication is a good idea.

All of those would be a bad idea as they would attract dust. It would serve you best to just replace it if it gets bad.

I went to the dealer and was told that replacement is over $250 . The parts person told me to use "dry graphite" first and see if it helps. Anyone use this for lock. The key is hard to get in the ignition . Once I apply pressure, the key goes in then starting / turning off the car is no problem.

Yeah, that sounds like a good temporary fix. Graphite is a common fix when the pins don't move easily.

It is possible that it is filled with gunk of some sort from previous use, but likely that it is worn out. Graphite might buy you a lot or a little time, no telling.

When I hear of one going bad with so few miles on it, I can fairly safely assume it has been damaged, gotten filled with gunk, or is of poor quality construction in the first place. Graphite is a temporary fix for all of these, but repeat applications of graphite when it starts sticking again could keep you from having to replace it for a long time..

Dry graphite is the way to go. But is only a temp bandaid to an issue that is going to get worse over time.

Is there a way to clean the inside first..Like compressed air they use for computers?..or will that further push the dirt in

Compressed air would likely make it worse.

If I was to try to lubricate, which would be better...The one in the attachment or dry graphite.

It looks like that can claims it is dry graphite. I've never used a can like that, but maybe it would work.

I've always used the little puffer tube ones that looks like they aren't blowing anything. Not much is needed so it works out well.

well, locksmith said he could fix it (as his side job). He took it out and did something to the inside of switch (said nothing was broken) and put it back.
Took him 30 min and took $300.

It seems to be working for now.