Simpson drew unwanted attention earlier this month when she flubbed the words to Parton's "9 to 5" during a taping of the annual show, grew flustered and fled the stage. Producers gave her a second chance at the song.
But after Simpson saw a tape, she requested the second attempt be pulled from the show, which airs Dec. 26 on CBS.
"She really wasn't happy with her performance and she did want it to be perfect for Dolly, who she idolizes," said Cindi Berger, a spokeswoman for Simpson.
"We appreciate the time and energy Ms. Simpson put into this event and respect the high standards she has for herself and that of the Kennedy Center Honors," said George Stevens Jr., show producer.