What is the preferred way to rename z-wave entities?

I’m not sure why they haven’t deployed a way to remove entities from the entity registry. My guess is that’s your problem. core.entity_registry. Back up this file, shut down home assistant. Then do the following to remove an entity you don’t want:

{
    "data": {
        "entities": [
            { #highlight this line
                "config_entry_id": null,
                "device_id": null,
                "disabled_by": null,
                "entity_id": "light.z",
                "name": "z",
                "platform": "a",
                "unique_id": "tyertyertyertyertyrety"
            }, #to this line and delete.
            {
                "config_entry_id": null,
                "device_id": null,
                "disabled_by": null,
                "entity_id": "light.y",
                "name": "y",
                "platform": "a",
                "unique_id": "ghjkghjkghjkghjkghjkghjkghjkghjkghjk"
            },
            {
                "config_entry_id": null,
                "device_id": null,
                "disabled_by": null,
                "entity_id": "switch.x",
                "name": "x",
                "platform": "b",
                "unique_id": "asdfasdfasdfasdfasdfasdfasdfasdf"
            }
        ]
    },
    "key": "core.entity_registry",
    "version": 1
}

you will end up with this:

{
    "data": {
        "entities": [
            {
                "config_entry_id": null,
                "device_id": null,
                "disabled_by": null,
                "entity_id": "light.y",
                "name": "y",
                "platform": "a",
                "unique_id": "ghjkghjkghjkghjkghjkghjkghjkghjkghjk"
            },
            {
                "config_entry_id": null,
                "device_id": null,
                "disabled_by": null,
                "entity_id": "switch.x",
                "name": "x",
                "platform": "b",
                "unique_id": "asdfasdfasdfasdfasdfasdfasdfasdf"
            }
        ]
    },
    "key": "core.entity_registry",
    "version": 1
}

if you delete the last item inside the entities collection (switch.x in the example). Then you need to remove the comma from the previous item (which would be light.y):

{
    "data": {
        "entities": [
            {
                "config_entry_id": null,
                "device_id": null,
                "disabled_by": null,
                "entity_id": "light.y",
                "name": "y",
                "platform": "a",
                "unique_id": "ghjkghjkghjkghjkghjkghjkghjkghjkghjk"
            }, # remove this comma if you delete last item.
            { # last item start (delete start)
                "config_entry_id": null,
                "device_id": null,
                "disabled_by": null,
                "entity_id": "switch.x",
                "name": "x",
                "platform": "b",
                "unique_id": "asdfasdfasdfasdfasdfasdfasdfasdf"
            } # last item end. (delete end)
        ] # this signifies the end of the collection. (Don't delete this)
    },
    "key": "core.entity_registry",
    "version": 1
}
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