Quick Steps
Download & Install SharePoint Online Management Shell Module (released on and after November 2017 or newer)
Open SharePoint Online Management Shell
Connect to your SharePoint Admin Portal
Execute the following PowerShell command:
# get a reference to the site collection where the
# site collection app catalog should be created
$site = Get-SPOSite https://your-domain.sharepoint.com/site-path
# remove site collection app catalog
Remove-SPOSiteCollectionAppCatalog -Site $site
That's it!
For detailed steps, please follow the commands given in our Configure Site collection app catalog using PowerShell article and the only change is to use Remove-SPOSiteCollectionAppCatalog command instead of Add-SPOSiteCollectionAppCatalog