'Instead of' has not been correct only when it is being used vis-à-vis rather than or instead. 'instead of' has been used in some non-underlined parts in some GMATPREP questions.
Why 'rather than' or 'instead' is preferred over 'instead of' is a matter of observation and conjecture although GMAT itself per se has not made the reasons explicit.
Probably, whenever there is some preference or penchant involved for something over something, then, 'rather than' makes the inclination more obvious than 'instead of.'
Let's take the case in front.
Recently, two calliopes, hummingbirds that weigh one-tenth of an ounce each, were seen flying in several northeastern parks and conservancy centers instead of the Gulf of Mexico, their normal flight path at this time of year.
The birds have certainly preferred northeastern parks and conservancy centers for some reason over their usual path. Therefore, we can boldly reject 'instead of.'
Another probable reason is that 'instead of,' a prepositional phrase cannot take anything other than a noun or a noun phrase after that. Whereas, 'rather than' can take both verb and noun. 'Rather than' can also introduce a clause as a conjunction and can take a preposition.
A case in point.
The parachute-like membranes of Africa's scaly-tailed flying squirrels differ from those of the flying squirrels in the family Sciuridae
because they are attached to a cartilage rod at the elbow instead of the wrist.
(A) because they are attached to a cartilage rod at the elbow instead of
(B) because of being attached to a cartilage rod at the elbow rather than at
(C) in their attachment to a cartilage rod at the elbow instead of being attached at
(D) in that, they are attached to a cartilage rod at the elbow rather than at
(E) in their being attached to a cartilage rod at the elbow instead of
Ans: D.
Here, 'instead of' is unable to take the prepositional phrase 'at the elbow,' lest it should become unparallel.
All said and done; this perception might be of some help when someone is hard pressed for time in the hall.