You are correct about wipeout the only thing is you need to use draw order. So its, Block1 wipeout block2. Ok the problem wipeout does not support an arc, but you can facet an arc so wipeout still works. See lisp.
Provide a dwg sample, looking at above though you would use bpoly to make a series of plines explode then trim guts out, convert arc to facets than pline again and wipeout. It maybe able to be automated somewhat. The big hint copy block to right a fixed amount and work on it there, then move wipeout only back.
Arc-to chords.lsp