It is not supported SRS at VxRail 7.0.350 or later.
You must use SCG(Support Connect Gateway).

It is need to migrate SRS to SCG or delete SRS and deploy SCG.

https://www.dell.com/support/kbdoc/en-us/000196945
https://www.youtube.com/watch?v=dJncHnKNWsM

Since 7.0.350, you can use Direct Connection option from VxRail Manager to SRS 

Servers as well as external SCG option.

If SRS VE was upgraded to SCG prior to VxRail upgrade, it seamlessly is migrated from External SRS to External SCG or  from internal SRS to Direct connection.

I'm working with support on this today.  6 clusters, all 6 updated from SRS 3 to SG5.  Then 4 of the clusters were upgrade to 7.0.350 with direct connect.  3 of the 4 on direct connect stopped phoning home.  1 of the 2 on SG 5 stopped phoning home.

also, depending where I look, I get different results.  In the main VxRail plugin in vCenter UI, it said phone was successful.  Vcenter cluster view, support, it shows the tests fail.  And in My VxRail, it shows no phone home.

Support and I haven't been able to get past this error if we try to just disable the current config and reconfigure it with direct connectivity - 'Environment check failed for enable remote connector'

In order for seamless transition from Internal SRS of pre-7.0.350 to Direct Connect of post-7.0.350, it requires VxRail Manager to have internet connection to Dell EMC Backend server.

Otherwise, it fails to connect, then VxRail cannot send callhome and get remote support.

If your VxRail Manager is not allowed to access internet directly, I would recommend you to reconfigure as Connect via Gateway using SCG5.

Hi all, if I understand correctly  I can remove the esrs VM if we've a direct connect?

Thanks in advance

Yes, correct.

Just removed, thank you!