Don't forget to adjust the vertices in the Front View as well. Repair the holes in the mesh by selecting pairing edges and then Bridge them.
For the pegs, we'll use another Box with 3 Length segs converted to an Editable Poly. Move the top and bottom vertices to give the box an oval shape. Then, on one of the sides, select the two middle edges.
Use Connect to create two connecting edges. Set the Pinch value so that the new edges define a square in the center of that side.
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