G'Day (in my best Aussie accent)
You should be able to remove the wheel without removing the cable at the speedo drive, undo it at the back of the clock instead and thread the cable through. At least then you can carry on with the fork removal, while you ponder what to do with that screw.
FYI, the screws on our bikes are JIS (Japanese Industry Standard) and not Phillips, which is usually why they get buggered up in the first place - owners using the wrong screwdrivers. You'd do well to get a set of JIS screwdrivers to prevent this scenario in the future.
If the head of that screw is too knackered, you may well have to drill it out. At least it will be easier on the bench or with a pillar drill if you have access to one.