The failure to update the vCenter credentials is due to stale Management Cluster information in the Management Cluster-related tables in the caas_spoke database in TCA-CP.
Resolution
After confirming that the cluster does not exist. Delete stale mgmt cluster-related entries.
Get the k8s-bootstrapper-service service IP info from TCA-CP VM: kubectl get svc -n tca-cp-cn k8s-bootstrapper-service
Use the curl command to delete the Management Cluster with force: curl -X DELETE "http://<service IP from above command>:8888/api/v1/managementcluster/########-####-####-####-############?force=true"
Delete the tkgcontext: curl -X DELETE "http://<service IP from above command>:8888/api/v1/tkgcontext/#########-####-####-####-###########"