[1642] Unavailable avatars can't be unfavotired in-game.
available in future release

_spidget
Avatars that are unavailable can't be removed from your favorite avatars list.
Also, it seems that the UI behaves differently depending on if the avatar was privated or deleted.
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Tupper - VRChat Head of Community
Thanks for the feedback! We're working on this.
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This post was marked as
available in future release

Tupper - VRChat Head of Community
Thanks for the feedback! We're working on this.

StormRel
Merged in a post:
[1643] Can't unfavorite unavailable avatars

DAG-XR
When an avatar that you favorited becomes unavailable, it becomes impossible to remove them from your favorites from within the client.

StormRel
Merged in a post:
[1642] Can No Longer Unfavorite Private Avatars

Kazy
I have a few Avatars that I've favorited that have since been privated. In the beta, I can no longer remove them from my favorites. Possibly because the "Unfavorite" has been converted into a more universal button.

StormRel
tracked