No, not needed to remove it from inventory ,just a rediscovery works on my side .
May be one difference could be that I also have vmware probe monitoring the Hosts , but I am not managing any of the VM's using the vmware probe and also have "show_vms = no " key set so that no vm's are discovered by the vmware probe
Normally just rediscovery should work , try to verify if the rediscovery is running successfully and does not have any issues with the wmi credentials being used in the profile