Erase from the repo, a little non-standard, but fine. Being asked to remove it from all developer machines sounds like someone misunderstood how version control works. Was that a real life example you hit?
They might have a model of version control in their head that predates distributed version control systems - I never used one myself, but the code base I work on still has scars here and there from the era when only one developer could have any single file checked out.
It's rather simple: remove it from the origin repo using BFG Cleaner or whatever, then ask devs to delete and re-clone the repo. Not everything needs a complex technical solution.
Git clones the entire remote repository to each developer's machine. So, if you accidentally committed something you shouldn't have two weeks ago, everyone will now have a copy in their local repo. And you can't always just tell people to delete their local repos and start again, since they might have local branches they're working on, etc.
