Drilled holes for Post installed Concrete min width

I have a question about the contractor wanting to post install column dowels. When attempting to drill in their anchors they hit the rebar in the slab and shifted and kept hitting. I am reaching out to you to see what you suggest for 1 filling the holes. Also if there is an issue with the strength of using a HY 200. My concerns are edge distance of 1 3/4". Other concern I have is when the holes are connecting is the max diameter of 1 1/4".

Please let me know if you need more information from me

Thanks