Chosen Solution
I going to replace the screen. My question is do I need to replace display adhesive too?
You don’t have to, the screen will hold fine without it. The adhesive is there as part of the water resistance. However, even if you replace the seal, you should never assume moving forward that the phone is still water resistant. Those seals are placed by factory automation in a clean, dust-free environment and even then they are known to fail. Doing this on your kitchen counter is less than ideal and will certainly not resist water to the same degree.