The Exchange Server integrates fully with the Active Directory Schema. Also, you might not be allowed to install or have repercussions in the setup. If you install a new Exchange Server, you would end up with issues from the residue of the previous installation. You may also need to clean up the Active Directory Schema for any future installation of Exchange Server. Due to this, local users may not be able to connect to their Exchange Online mailboxes and services. You could have issues with auto discovery after migration to Microsoft 365. Theoretically, after the server has been uninstalled correctly and decommissioned, you will still need to perform the clean-up from the residue that the installation had in the Active Directory Schema.
For setups which will retain their Active Directory due to local applications that require Active Directory authentication, you need to perform a clean-up of the Active Directory Schema after the Exchange Server has been uninstalled.
If you are decommissioning the local Exchange Server after a migration to Exchange Online and all the users have been Azure joined, you would not need the local Exchange Server or even the Active Directory. There are many reasons why you would need to uninstall your local Exchange Server.
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