Here is the item again:

Darryl has the messiest book bag (A) of anyone Rachel knows; (B) he essentially has a compost pile rotting in the main compartment. (C) For instance, pistachio shells, pencil shavings, and a brown banana.

You correctly realized that the phrase following for instance is a an afterthought fragment. You chose to revise the fragment so that it became a complete sentence, like this:

Darryl has the messiest book bag of anyone Rachel knows; he essentially has a compost pile rotting in the main compartment. For instance, there are pistachio shells, pencil shavings, and a brown banana.

Nicely done!

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