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It can't be deleted, no - this is a limitation of the upstream GCP API.

It does look like we aren't handling this well, thanks for the bug report

<@UCWG26BH7> How can I overcome this at the moment? I need to have the ability to destroy these stacks without any manual work (i.e delete the CrytpoKey from the state)

<@UCWG26BH7> Any update regarding the issue?
I’m unable to destroy GCP stacks at the moment :confused:

I don't have an update here I'm afraid, you'll have to `pulumi state delete` the key