Summary

If there is a need to remove the .NET Core 2.2.5 from an already set up system and switch to a higher version please follow the below steps with additional item.

Solution

1. Stop the services and remove the .NET Core 2.2.5 
2. Ensure that the .NET Core 3.1.8 is installed (comes with 12.40.11 version of Reporting service)
3. Additionally after that - locate on official Microsoft recourses and install .NET Runtime 3.1.32
4. Recycle IIS and restart the service

After that the system will resume normal work.