Known primarily to locals before being discovered by MTV in the late 1980s, in Manhattan Blue Man Group, who started with a troupe of three performers, expanded to a rotating company of eight to nine professionals who appeared in trios at performances nationwide.
A)
Known primarily to locals before being discovered by MTV in the late 1980s,
in Manhattan Blue Man Group, who started with a troupe of three performers, expanded to a rotating company of eight to nine professionals who appeared
Known primarily to locals....in Manhattan..Modifier issue. Out
B)
Known primarily to locals in Manhattan before being discovered by MTV in the late 1980s,
Blue Man Group started with a troupe of three performers and has since expanded to a rotating company of eight to
nine professions who appearCorrectC) In Manhattan, Blue Man Group was known primarily to locals before being discovered by MTV in the 1980s,
starting with a troupe of three performers,
expanded to a rotating company of eight to nine professionals,
who appeareduse of present participle 'starting' is correct as the doer of this action is Blue Man Group but the placement of the past participle 'expanded' is awkward as it can't modify the nearest noun, which is performers. I think it would make sense if both these participles were connected using 'and' conjunction.
D) Originally a troupe of three performers who
has since expanded to a rotating company of eight to nine professionals, Blue Man Group was known primarily to locals before being discovered by MTV in the late 1980s in Manhattan,
who appearAgain modifier issue...' who appear' is modifying what. And, though I'm not sure

, we need the plural verb 'have' in the relative clause.
E) Blue Man Group was known primarily to locals in Manhattan before being discovered by MTV in the late 1980s, and
starting with a troupe of three performers,
expanding to a rotating company of eight to nine professionals, and
appearingbunch of modifiers, which seem to modify Blue Man Group but logically shouldn't...Modifier error