The host is part of a cluster where DRS was set to manual mode and the host was already in maintenance mode.
1) To resolve the issue, set the DRS mode of the cluster to fully automated mode :-
a) Login to the vSphere Client
b) Navigate to your cluster
c) Click Configure -> vSphere DRS
d) Click Edit
e) Select Fully Automated from the Automation Level dropdown menu.
f) Click OK
2) Remove the host from maintenance mode :-
a) Right click on the host from vCenter
b) Choose the option "Maintenance Mode"
c) Select "Exit maintenance mode".
3) Retry the task of removal of the host from the SDDC manager.