We’ve been using a bunch of step drill at work. I had some luck sharpening with a Dremel on the inside flute, then filing the outside cutter edge; but they’re not a good a new. We don’t need an exact hole size, so it works somewhat as those things are spendy.
The best way, would be to take it to a tool and cutter grinder. they a have grinder for doing just this.
It would be like new.
I can sharpen a drill bit, everything else, I send to the pros.
Some success. I carefully ran down the straight flute with the side of a 3" cut off disc in my air cut off tool. They don't drill like a fresh, new bit but they do the job.
My years ago, when I was making tools at a previous job, I made and sharpened step drills on a Royal Oak tool and cutter grinder. Very specialized tool. It could grind a flat surface on a tool while it was spinning. All done with cams.