We do not require the hydrometer correction. Can we remove it from our conversion group configuration?

Yes.
The hydrometer correction may only be required, if you enter an observed density that is determined with a glass hydrometer. If you utilize an ASTM D1250-04 implementation, you may simply remove the hydrometer function (and also remove the hydrometer indicator from the reading group):

ASTM D1250-80 implementations contain a built-in (by measurement standard definition) hydrometer correction logic, which requires that you actively turn the correction off if it is not required – read note 000026 for all important details.

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