I tried using inclusion exclusion where set $A$ is all the rearrangements where two $A$s are consecutive and set $B$ where two $B$s are consecutive. However, I got $8400$ which is incorrect. I think it has to do with there being $3$ $B$s so I am somehow counting them wrong.
This was my process:
Total rearrangements of $AABBBCCDDD:$ ${10\choose 2,3,2,3} = 25200$
$\left|A\right| = {9\choose 1,3,2,3} = 5040$
$\left|B\right| = {9\choose 2,1,1,2,3} = 15120$
$\left|AB\right| = {8\choose 1,1,1,2,3} = 3360$
$A\cup B = 25200 -(5040+15120)+3360 = 8400$
Any help or guidance would be extremely appreciated.
We wish to find the number of arrangements of AABBBCCDDD in which no two As are adjacent and no two Bs are adjacent.
As you found, the number of distinguishable permutations of AABBBCCDDD is $$\binom{10}{2, 3, 2, 3}$$ From these, we must subtract those arrangements with at least one pair of adjacent As or adjacent Bs.
A pair of adjacent identical letters: If a pair of As are adjacent, then we have nine objects to arrange: AA, B, B, B, C, C, D, D, D. As you found, they can be arranged in $$\binom{9}{1, 3, 2, 3}$$ ways.
If a pair of Bs are adjacent, then we have nine objects to arrange: A, A, BB, B, C, C, D, D, D. As you found, they can be arranged in $$\binom{9}{2, 1, 1, 2, 3}$$ ways.
Two pairs in which the letters in each pair are adjacent identical letters: There are two possibilities, either there is a pair of adjacent As and a pair of adjacent Bs or there are two pairs of adjacent Bs. As angryavian pointed out in the comments, you overlooked the second case.
If there is a pair of adjacent As and a pair of adjacent Bs, we have eight objects to arrange: AA, BB, B, C, C, D, D, D. As you found, they can be arranged in $$\binom{8}{1, 1, 1, 2, 3}$$ ways.
If there are two pairs of adjacent Bs, the three Bs must be consecutive. Again, we have eight objects to arrange: A, A, BBB, C, C, D, D, D. The number of ways they can be arranged is $$\binom{8}{2, 1, 2, 3}$$
Three pairs in which the letters in each pair are adjacent identical letters: For this to occur, the two As must be adjacent and the three Bs must be consecutive. Hence, we have seven objects to arrange: AA, BBB, C, C, D, D, D. The objects can be arranged in $$\binom{7}{1, 1, 2, 3}$$ ways.
Hence, by the Inclusion-Exclusion Principle, the number of arrangements of AABBBCCDDD in which no two As are adjacent and no two Bs are adjacent is $$\binom{10}{2, 3, 2, 3} - \binom{9}{1, 3, 2, 3} - \binom{9}{2, 1, 1, 2, 3} + \binom{8}{1, 1, 1, 2, 3} + \binom{8}{2, 1, 2, 3} - \binom{7}{1, 1, 2, 3}$$