Step 2: Steps
Knocking nails out of wood is a skill. A skill albeit that you most likely will never write on your CV but one that nonetheless require you to be patient and accurate.
If nails bend use the lump mallet like an anvil and knock them against back it into shape with the claw hammer.
If a nail becomes to malleable cut it in half using pliers or a hacksaw and try knocking it out again.