The nonlinear propagation of electrostatic excitations and their multi-dimensional instability in a magnetized, degenerate electron-positron-ion (EPI) plasma system (containing inertial cold positrons, relativistic degenerate electrons and hot positrons, and negatively charged immobile heavy ions) are theoretically investigated. The reductive perturbation method is employed to derive the Zakharov-Kuznetsov equation which admits a localized solitary wave solution for small but finite amplitude limit, and the multi-dimensional instability of the positron acoustic solitary waves (PASWs) is studied by the small-k perturbation expansion method. It is found that the basic characteristics (viz. phase speed, amplitude, width) of the PASWs are significantly affected by the degree of obliqueness, relativistic degeneracy, and plasma particle number densities. The instability criterion and its growth rate, which are depending on the magnetic field and the propagation directions of both the PASWs, and their perturbation modes are discussed. The present analysis can be helpful in understanding the nonlinear phenomenon in dense astrophysical as well as space plasma systems, especially in pulsar environments.