Yeah, I tried that already and it didn't work. The only way I could resolve the issue was doing the following:
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Delete all backups and selection lists that include the unremovable server
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Recreate all of the above from scratch
What's funny is that my servers still see the old server in the favorites area as well, despite the machine being powered off. If I right-click and select removing the server from the favorites list, this also doesn't work. Just to add, I built these 3 separate servers weeks ago and setup all jobs independently and didn't copy setting from another server.
I smell a bug......................