Now my Apple TV Neflix app does not have an instant queue. It has My List as a replacement for Instant Queue and finally the remove button for movies and tv shows appeared. I guess Apple or Netflix fixed the issue this morning while I was at work.
Again its happening and I have the latest update. There is no way to remove a movie from "My List" in the Netflix app. I tried reseting, restoring, and unplugging it for a minute. Still the same issue persists. I even called Netflix and they said to me that Apple TV 3 does not allow any movie removals.
Since My List became active, I have no longer been able to remove a viewed title from the queue in Netflix on my ATV2. I have to go to the Netflix website, select My List, and remove the title from there. Very annoying.