@Tomnibus Thanks for reaching out. Yes you can safely remove the Azure AD registered device state for personal devices from Azure AD.
Once removed, user might be prompted for registering them again, so educating users on selecting what to do will also help, otherwise they might end up in Azure AD portal again. Unfortunately this prompt cannot be controlled at this point of time for personal devices.
For corporate devices,
If you have a device which is domain joined and also registered as Azure AD registered, it can lead to a dual state scenario- you can read further to understand how to prevent it : https://learn.microsoft.com/en-us/azure/active-directory/devices/hybrid-azuread-join-plan#handling-devices-with-azure-ad-registered-state
Enable the following registry to block your users from adding additional work accounts to your corporate domain joined, Azure AD joined, or hybrid Azure AD joined Windows 10/11 devices. This policy can also be used to block domain joined machines from inadvertently getting Azure AD registered with the same user account.
HKLM\SOFTWARE\Policies\Microsoft\Windows\WorkplaceJoin, "BlockAADWorkplaceJoin"=dword:00000001
For Personal Devices
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For now, you can only educate the users on selecting the options they have and the end result. This blog covers the 4 options users have when they see that prompt
https://msendpointmgr.com/2021/03/11/are-you-tired-of-allow-my-organization-to-manage-my-device/
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