What this means is that you have some work items with the status In Stage, before you can delete the status you need to transition those items to a different status.
You can find which items are in this status using this JQL filter:
Status = "In Stage"
Once you have updated any items that appear in that filter you can try and remove the status again, or do as @Victor Law suggests with copying and replacing the workflow; part of doing this would require you to change the status of those work items anyway.
It is mainly you are editing an active workflow associated with a project. In this case, you can clone the current workflow, edit it, and replace it with the updated workflow.
You may refer to the following document for the full guide:
https://support.atlassian.com/atlassian-cloud/kb/how-to-delete-a-status-in-jira-workflow/
Thank you.
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