As the delete/remove option is greyed out in License Manager in the vCenter UI, it is not possible to remove a license that is no longer being used.
vCenter 7.x
vCenter 8.x
For example this issue can occur if an ESXI host is decommissioned but the license is still assigned to it, which leaves behind a stale license.
Make sure you take a snapshot of the vCenter before proceeding with the below action plan (powered-down snapshots of all nodes in the SSO domain if you have multiple vCenter Servers in Enhanced Linked Mode (ELM).
The tool Jxplorer will need to be downloaded in order to remove the license.
1. Download Jxplorer: Jxplorer
2. Connect to vCenter via Jxplorer with the steps below:
>Open jXplorer
>File -> Connect and enter following details (if the SSO domain was vsphere.local):
Host: full fqdn of the vCenter / PSC node
Protocol: LDAPv3
Port: 389
Base DN: dc=vsphere,dc=local
Level: User + Password
User DN: cn=Administrator,cn=Users,dc=vsphere,dc=local
Password: SSO_ADMIN_PASSWORD
3. Make a note of the License Key of the License that needs to be removed.
4. Once connected to the vCenter via Jxplorer, go to the location: Services -> LicenseService
5. Scroll down the LicenseEntity section
(Do not touch the LicenseDescriptionEntity)
6. Select each LicenseEntity in the column and check if the vmwLicSvcLicenseType on the right hand side matches with the License Key you want to remove.
7. Once you have identified the LicenseEntity that corresponds to the License Key of the License that needs to be removed, you just right click the LicenseEntity and select "Delete".
8. Restart the vCenter services with commands:
service-control --stop --all
service-control --start --all
9. Log back into the vCenter and confirm the license has been removed.