Error ‘Profiles use this record type as default’ on record type Deletion or Deactivation

Important: These steps require Enhanced Profile User Interface to be temporarily disabled

To resolve this, edit each profile listed in the error and change the default record type assigned. 

Some profiles don’t allow edits to their assigned record types. These profiles include Chatter Only, Chatter Free, Package License Manager, Platform Integration User, and Salesforce Administrator.

When an administrator creates a record type, they have the option to assign a default record type to those profiles. To remove the record type assignment from those profiles, follow these steps:

In Salesforce Classic

Setup | Manage Users | User Management Settings

In Lightning Experience

Setup | Users | User Management Settings

While within User Management Settings, disable "Enhanced Profile User Interface" by toggling the switch from Enabled to Disabled (required to implement the following solution).

 Steps to update the record type assigned for the listed profiles

Note: These steps must best done in the Salesforce Classic interface.
 

1. When receiving the error, the profile in the error message is a link, for example:

https://[domainname].salesforce.com/00e41000000abcd

Copy this link into Notepad, or any other text editor.

Note: The 15 character ID, that starts with '00e', is the ID of the profile we want to adjust. Save this ID later.
 

2. In Salesforce Classic, go to Setup | Manage Users | Profiles (or Setup | Users | Profiles in Lightning Experience). Click the standard System Administrator profile, scroll down to "Record Type Settings," and click the [Edit] link next to the object that includes the record type to deactivate or delete. For this example, we're working with the Account object. If your error points to a different object (eg Contact, or a custom object, click the Edit link next to the object noted in your error).

The URL of this page looks like this:

https://[domainname].salesforce.com/setup/ui/profilerecordtypeedit.jsp?id=00e41000000wxyz&tid=Account&pn=System%2BAdministrator&retURL=%2F00e41000000wxyz

Copy this into Notepad as well.
 

3. Replace the profile Id in the second URL (located after "id=") with the Profile Id for the profile that needs a different default record type. Make no other changes.

Example:

https://[domainname].salesforce.com/setup/ui/profilerecordtypeedit.jsp?id=00e41000000wxyz&tid=Account&pn=System%2BAdministrator&retURL=%2F00e41000000wxyz
 

Becomes:

https://[domainname].salesforce.com/setup/ui/profilerecordtypeedit.jsp?id=00e41000000abcd&tid=Account&pn=System%2BAdministrator&retURL=%2F00e41000000abcd

4. Copy the modified URL into the browser's address bar and press Enter. This loads the 'Record Type Settings' edit page for the profile and object we need to adjust.
5. Change the default record type for that profile as desired and save (Complete from steps 1 through 5 for each profile listed in the error).
6. Return to the record type to deactivate or delete, and try again.