Hello All - I ran myself into an interesting problem this weekend!

I moved into a house with a painted fireplace. I probably would not have painted it if it weren't already painted a gross color.... So I got out my paint and hopped to it.

Come to find out, the insert had been caulked in place and some excess clear caulk was spread around. Obviously, my paint did not adhere to this thin layer of caulk and instead it peeled right off.

So, I peeled what I could of the paint from the caulk, and some of the caulk came with it. I have a mess on my hands and I am trying to decide between:

1: Scraping off what I can of the caulk and painting around it or...

2: Completely scraping the caulk out of the crevice and doing my paint job, and re-applying caulk after paint is cured.

...or maybe a third option that I haven't thought of!

Has anyone faced a similar situation? I am not even familiar enough with the installation of an insert like this, but I think this caulk was just for aesthetics rather than to really seal the gaps. I am afraid I cannot use paintable caulk because it will need to be heat resistant too.

Here is an image of my problem!!