Looking for Google Sheet Array Formula

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Hello I'm trying to create a Array Formula for the following B and C columns but getting error, but without Array Formula the formula works by dragging the formula to all the cells. So I need a Array Formula so I can restrict a formula for specific range, So when I add a new row anywhere in d middle the that row should be working without any formula.

https://docs.google.com/spreadsheets/d/1kc58OkoA3SysApgALJnecnIoK2uyPV6FlhyVRTUXXcI/edit?usp=sharing

So in the above link where there is a list of items in Sheet2 A: and I importing the list to Sheet1 A: with Array Formula.

Now in D column dropdown list whenever we select an item it keeps removing the used items from C column.

So how to make work while adding Array Formula for B and C Column.

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