Understanding the argument -
The conclusion is that the mosaics were created by traveling artisans. Because
1. Identical motifs appear in mosaics found in other Roman cities.
2. Most of the species represented did not live in the Sepphoris region when these mosaics were created
Let me give you another argument to explain the argument. Sorry, I am passionate about automotive, so allow me to use an example from the auto world.

An analysis of car advertisements in a remote mountain village reveals that many promotional materials feature sleek sports cars like Lamborghini and Ferraris. However, these luxury cars are rarely seen in the village, as it's not a typical location for such vehicles. However, since similar car advertisements with high-end models appear in magazines from various regions, it's reasonable to say that advertising agencies from other areas crafted these campaigns.
What if all marketing experts, including the marketing experts of this village, went to Ferrari and Lamborgini launches, and the Ferrari and Lamborgini marketing team gave them ready-to-use designs to start marketing in their areas? In that case, we can't say that advertising agencies from other areas crafted these campaigns.
Now, back to our argument, this is what option E highlights: there was a shared repository that everyone used. So, the artisans native to Sepphoris could very well create them, and we don't need TRAVELLING artisans.
Option Elimination -
(A) The Sepphoris mosaics are not composed exclusively of types of stones found naturally in the Sepphoris area. - In our argument, if we say the promotional materials are made of plastic, paper, or cloth, does it even matter? No. Out of scope.
(B) There is no single region to which all the species depicted in the Sepphoris mosaics are native. - Even if there is a single region, as in our example, say Ferrari is headquartered in Maranello, Italy, while Lamborghini is headquartered in Sant'Agata Bolognese, Italy. Does it even matter to our argument, which is "advertising agencies from other areas crafted these campaigns"? No. Out of scope.
(C) No motifs appear in the Sepphoris mosaics that do not also appear in the mosaics of some other Roman city. - We should know how to negate it. Wear your sentence correction hat. The key part is "No motifs appear in the Sepphoris mosaics." The rest is a relative clause introduced by that. So, the negation is "some motifs appear in the Sepphoris mosaics that do not also appear in the mosaics of some other Roman city. It means some motifs were unique to Sepphoris. Convert it into our example - some promotional materials were only made for this remote mountainous village. It's possible we can't use the same marketing campaign for a village and city, and on top of this, it is remote and mountainous, so we created something unique for this village. But is it relevant to the argument that "advertising agencies from other areas crafted these campaigns"? No. Out of scope.
(D) All of the animal figures in the Sepphoris mosaics are readily identifiable as representations of known species. This is equally applicable to natives and travelers. Moreover, the argument already says, "identical motifs appear in mosaics found in other Roman cities." This is not saying anything we don't know. It's a bit worse; it makes it general. Distortion.
(E) There was not a common repertory of mosaic designs with which artisans who lived in various parts of the Roman Empire were familiar. ok.