If I have this pictured correctly, the best fix is to remove the tape by cutting a bit over 1″ back on each side. Peel it off the best you can; might help to get it wet.
Then replace it with the mesh tape and fill with compound. Compound will adhere to paint ok, but if there is some sheen to the paint, it is best to sand lightly first.
For more on patching drywall, go to my website at http://www.bobf.info.