While cleaning up a development environment, we often use command ModelUtil.Exe to delete Model file of package, but it happen that the package is still shown on packagesLocalDirectory folder.
After performing the command ModelUtil.Exe to delete Model file of package, also follow the steps below to clean up package completely in many cases:
1- Stop IIS.(Aos machine)
2- Stop DynamicsAXBatch service on Task manager
3- Delete your package completely located on K:\AosService\packagesLocalDirectory
4-Open VS
5- Dynamics 365 --> Model management --> Refresh models
6. Restart WWW service, SQL Service IIS Service