The only sequence of steps that's both mathematically and grammatically correct is D,G,F,B,E in that order.
D.
For every $\epsilon>0$,
G.
we have $\left|\frac{y^2}{\sqrt{x^2+y^2}}-0\right| = \frac{y^2}{\sqrt{x^2+y^2}} \le \frac{x^2+y^2}{\sqrt{x^2+y^2}} = \sqrt{x^2+y^2}$.
F.
It follows that $\left|\frac{y^2}{\sqrt{x^2+y^2}}-0\right| < \delta$ whenever $\sqrt{x^2+y^2} < \delta$ for some number $\delta>0$.
B.
Choose $\delta$ such that $\delta = \epsilon$.
E.
For this choice, $\left|\frac{y^2}{\sqrt{x^2+y^2}} - 0\right| < \epsilon$.
This is very nearly the same choice of steps you have, except that:
you're missing step E, which is the only step with the necessary conclusion: that $|f(x,y) - L| < \epsilon.$
you have the extraneous step C, which doesn't fit in with the usual $(\epsilon,\delta)$ proof structure (we are given $\epsilon$, but we get to pick $\delta$ based on $\epsilon$) and also is redundant given that you have step B, where we pick a $\delta$.
I wouldn't call either of these serious omissions; this problem requires some amount of reading the author's mind to figure out what the steps are intended to mean out of context.
There's a lot of freedom in how to order these steps. Mathematically, I want to put G before F: the logic here is that we prove $A \le B$ (this is in step G), and therefore $A < \delta$ whenever $B < \delta$ (this is in step F). This is also the only aspect of the order where we disagree.
My other reasons for ordering these steps are non-mathematical (and wouldn't apply if we got to pick the wording of the proof, the way we would if we were really writing it):
G should go immediately after D, because they are sentence fragments that form a sentence together.
B should go after F, because the way F is worded, we haven't chosen a $\delta$ yet.
E should go after B, because it begins "For this choice", so it should happen after we make a choice, and B says "Choose".
In an actual proof, it wouldn't be unreasonable to put the equivalent of step B as early as immediately after D, for example. But with this specific wording of the steps, doing so wouldn't make sense.
The only sequence of steps that's both mathematically and grammatically correct is D,G,F,B,E in that order.
D.
G.
F.
B.
E.
This is very nearly the same choice of steps you have, except that:
I wouldn't call either of these serious omissions; this problem requires some amount of reading the author's mind to figure out what the steps are intended to mean out of context.
There's a lot of freedom in how to order these steps. Mathematically, I want to put G before F: the logic here is that we prove $A \le B$ (this is in step G), and therefore $A < \delta$ whenever $B < \delta$ (this is in step F). This is also the only aspect of the order where we disagree.
My other reasons for ordering these steps are non-mathematical (and wouldn't apply if we got to pick the wording of the proof, the way we would if we were really writing it):
In an actual proof, it wouldn't be unreasonable to put the equivalent of step B as early as immediately after D, for example. But with this specific wording of the steps, doing so wouldn't make sense.