Hi,
There is indeed a restriction. xTensor was originally designed for
real structures, and then generalized to work with inner complex
vector bundles, but has been never been explicitly prepared to handle
complex manifolds, and hence neither complex tangent bundles. That is
why you get an error. DefManifold does not expect (and ignores) the
Dagger option, but passes it to DefVBundle[TangentCM,...] which
defines the complex TangentCM. Then UndefManifold[CM] knows that it
has to undefine TangentCM, but doesn't know that there is a TangentCM\
[Dagger] and hence does not remove it from its list of "visitors". To
solve this, simply do VisitorsOf[CM]^={} before undefining CM. It
would be very simple to fix this, but I'm not sure right now whether
all of xTensor is already compatible with complex manifolds and
tangent bundles, so I will not do it before I decide that.
Cheers,
Jose.