I like "B" because I would like direct access to the kitchen from the garage, otherwise you will be carrying groceries through the living room to the kitchen. I would also use pocket doors for the laundry room door and the hallway door.

I like B better too for the same reasons Kris states. Could you make your island 12 or 14" deeper to utilize the side that faces the living room for cupboards?

I agree. Keep your garage to mudroom to kitchen pathways clear & direct. Expand the island thickness - even if it's only by a bit so that the living room side of it is storage, too. There's room to do it. I'm also building now and am using quite a few pocket doors. In your case they would help keep the mudroom/laundry area space usage efficient.