Cannot remove applications for event registrations with designations

When attempting to adjust the event that the constituent registered to on a posted payment you may get the error: cannot remove applications for event registrations with designations. 
You will have to delete the payment from the constituent record and re-add via one/off payment add form or via batch. 

Steps to Duplicate

1.  Edit posted payment on record.
2.  Attempt to remove the application from payment
3.  Get above error message

Environment

 Blackbaud CRM
 3.0
 4.0.131.2
 3.0.516.60

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