You're definitely on to some grammatical ambiguity there. I'm trying my darndest to think of a good grammatical reason why we have to interpret it LSAT's way vs. your alternative.
But I can't come up with anything. It definitely seems like you
can add "in favor" as another prepositional modifier of "research and conclusions".
Had they used a different verb than "ignore", we might be forced to expect a 2nd half to that thought.
(For example, "prefer X to Y" would always have a two part structure, as would "favor X over Y".)
However, it's totally possible to just say "ignore X".
Saying "ignore X in favor of Y" isn't super common to my ears, but it's definitely legit.
If a writer wanted to clearly indicate your alternative interpretation of that sentence, she would remove that ambiguity by saying "research and conclusions of psychologists WHO favor the notions of lawyers"
Nevertheless, your interpretation wouldn't support (D). Even if the psychologists were taking the advice of lawyers, the lawyers could not be helping judges to minimize jury inferential error since we are told that the judges ignore the psychologists (and thus, by proxy, ignore the lawyers).
Good times.
