The Uninstall button will be enabled when the project opened in IDE is installed on the same machine. MSI use ProductCode property to determine if a package is installed. If ProductCode property is modified, the package is not considered installed.
After installing a MSI, if PackageCode property of the MSI is modified, or MSI is rebuilt with a different PackageCode property while keeping ProductCode property unchanged, rerunning the MSI will result in the error you described.
As an aside, it is not recommended to test installations on your developement machine.