Players Teleporting to wrong plays?

You're creating the 'AvailableSpawnPoints' table inside of a loop, meaning every iteration of the loop it just grabs every spawn point again. Make the table outside of the loop.

if Status.Value == "Started" then
                for y, player in pairs(plrs) do -- look here

                    local spawnPoints = game.Workspace.DanceStudioInside:FindFirstChild("SpawnDanceStudioDance")
		   - and here
                    local AvailableSpawnPoints = spawnPoints:GetChildren()
                    local char = player.Character or player.CharacterAdded:Wait()


                    if player then
                        if char then
                            char:FindFirstChild("HumanoidRootPart").CFrame = AvailableSpawnPoints[1].CFrame
                            table.remove(AvailableSpawnPoints, 1)
                        else
                            if not player then
                                table.remove(plrs, y)
                            end
                        end




                    end

                end