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I don't think the expression 'as a way' is incorrect. However, its usage in option E is.

'In order to' is used to explain the 'why' of an action.
Q: Why were the participants instructed to bring their chairs to the back of the auditorium?
A: In order to make room for the play instructor.

Hence, this is correct usage.

'As a way to' is used to explain one of the ways something can be done/achieved etc (depending on context). Hence, this is not the correct usage
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I think the issue in this question is getting the message across through the right modifier. Hence option D where the "who" modified the play instructor's actions perfectly
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Can someone explain me the reasons to eliminate A and B?

Posted from my mobile device
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Can someone explain me the reasons to eliminate A and B?

Posted from my mobile device

IMO A and B are adding unnecessary pronouns to modify people. Not only are these options exaggerated but also lack the concise nature of answers that we want.

Hope this helps!
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I don't understand what's the difference between D and E can anyone explain?
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Participants in the assembly were instructed to bring their chairs to the back of the auditorium so as to make room for the play instructor, who had large toys that would be manipulated by him
1st split Ideom mistake: So as, as a way, in order to - correct ideom - A and E - out
2nd split: verb tense: was/ would- according to the meaning, the instructor did not do the action, he would do - C -out
3d split: active or passive voice - GMAT prefers active voice - B - out

So, the answer is D
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