Let's analyse the options:
A. "The three-block long suburb, with trendy indoor framework and a much-loved Indian handicraft store,"
This seems to be grammatically correct and conveys that the suburb is three block long. I think there are no errors.
(let's keep this option for now)
B. "The three-block long suburb and trendy indoor framework and a much-loved Indian handicraft store,"
This option incorrectly suggests that the "suburb," "trendy indoor framework," and the "Indian handicraft store" are three separate things. Anyway, even if we consider those to be three separate things, there will be one more issue. Subject verb issue. (has will be incorrect with the compound subject)
(eliminate)
C. "Long suburb with the three-block, with trendy indoor framework and an much-loved Indian handicraft store,"
The phrase "long suburb with the three-block" is not grammatically correct or clear. The three-block should describe the length of the suburb directly, not as a separate entity.
Also, the usage of 'an' before 'much-loved' is incorrect.
(eliminate)
D. "Long suburb and the three-block, with trendy indoor framework and an much-loved Indian handicraft store"
Similar to B, this sentence incorrectly suggests that the "long suburb" and the "three-block" are two separate things, which they are not. Also, the phrase "an much-loved" is grammatically incorrect, as in the option C. I think the correct phrase is "a much-loved.".
(eliminate)
E. "Long suburb and the three-block with trendy indoor framework and an much-loved Indian handicraft store,"
This sentence incorrectly separates "long suburb" and "the three-block" as if they were two distinct entities, which is changing the meaning. Also, the phrase "an much-loved" is grammatically incorrect.
(eliminate)
I will go with option A.