I am sorry to hear you are having issues with the temperature sensing on your SMC G2. Removing the thermistor would not help with the error. Since only one temperature sensor is reading high, it does seem likely something is damaged. As a quick check though, could you post pictures of the board? Can you also confirm that the sensor is reading high with nothing connected to the SMC’s motor outputs?
You could get around the error by increasing the thresholds in the Advanced settings tab of the control center. We do not recommend using the SMC like that since it increases the risk of further damage to the system, but you could do it temporarily to see if the controller works otherwise.