How does one remove an item from an outfit

without replacing it with something else? I want to reduce my dreaded to zero but to do so I have to remove my Club affiliation from my outfit and I don’t have anything else to replace it with. So how do I empty my Club affiliation?

What you’re actually looking for is Dreaded-reducing equipment. There are options in Parabola and the Upper River.

You can’t unequip your Club, Ship or Spouse. You will, indeed, have to balance them out with items that reduce the relevant stats.