Managed Lost Mode can only be disabled by an administrator remotely : https://support.apple.com/guide/deployment/lock-and-locate-devices-depb980a0be4/1/web/1.0

If you are unsuccessful with the MDM command to disable Lost Mode even after rebooting the device and checking the queued commands on the WS1 console, then your only option would be to do a Device Wipe. I don't think Apple is capable of removing the Managed Lost Mode.