How do I delete custom BDS layers from the ArcGIS Desktop UI?

Answer

When trying to delete a custom BDS layer created with ArcGIS Business Analyst Desktop, the following error is returned:

Delete failed
Failed to delete selected object(s)

Use Windows File Explorer to delete the BDS files from C:\MyOutputData, or the specified location for output data created in Business Analyst. This allows them to be removed from ArcGIS Desktop the next time the software is opened.