If any personalization block is deleted and reference is removed from the transactional message template in the STAGEand DEV environment. In that case, an error mentioning personalization block doesn’t existoccurs while publishing the template.
As confirmed by Adobe Engineering, this is not a System bug, and there’s no need to remove the personalization block from the Delivery template XML.
This was raised as an Enhancement Request for a feature where once a personalization block is removed from Delivery HTML, its reference should be removed from Delivery source XML as well. The Reference number of the Enhancement Request is NEO-26625.