The correct answer is D. No error.
The sentence “He is going everyday for a morning walk with his friends and neighbours” is grammatically correct. The word “everyday” is an adverb that modifies the verb “going.” The phrase “for a morning walk” is a prepositional phrase that modifies the verb “going.” The phrase “with his friends and neighbours” is a prepositional phrase that modifies the verb “going.”
The sentence is clear and concise, and it conveys the intended meaning. There are no errors in grammar, punctuation, or spelling.