Run a trowel down the side to separate it from the mesh... or roll itthe mesh down the side as you have already done at the top with the overlap - just draw it down further, genetly.
if it's single-use, cut it with some scissors.
Should be easy to avoid disturbing the rootball.. make sure it isn't too dry when you do it so it holds together better. roots will grow through it, but why impede the roots in any way if it is easily avoidable? My 2 cents.
Also, never worry about "up-potting", which is what this is. Colloquially we often refer to it as transplanting, but it is nowhere near as stressful to a plant. Up-potting should never cause transplant shock. You'd have to be an incomepetent boob to cause shock while up-potting. This is an urban myth that you should not transplant autoflowers. I've up-potted somewhere between 300-500 plant so far and yet to see 1 instance of shock. I even had a rootball disintegrate in my hand before and it still grew fine after up-potting. It's one of those things that got repeated blidnly and cuaght on with the mob.
check out cocoforcannabis grow guides and articles in dr photon's corner. this is by far the best 'marijuana' information site out there with the least amount of bro-science. they'll even talk about how absurd it is to not up-pot an autoflower, lol.
The main reason not to put an autoflower in its final pot right away is the same reasons you don't do it for any othe plant. Watering a tiny plant in a large pot is a pain in the ass and only raises a very real risk of various problems... not just some OCD shit in someone's head they heard and repeated incessantly. It's impossible to employ proper watering habits. It often leads to superficial root growth. It can risk nute buildup if done wrong. The substrate stays wet for so long you grow funky shit in your medium that is not beneficial.