Do I need to uninstall mysql workbench to work with the xampp server as mysql server is already running on the same port?

MySQL workbench itself is fine. One way to solve this is indeed to uninstall the other MySQL server in order to run the XAMPP one. Another way is to adjust the MySQL server that comes with Workbench (stop it/change the port it binds). Alternatively, you can change the XAMPP MySQL server binding port (this might require further adaptations…). To do so, open the my.ini from the “Config” dropdown for MySQL in the XAMPP control panel and change the port value in the [client] and [mysqld] sections to some other free port.