Final answer:
Thalidomide inhibited appendicular bone development by impeding endochondral ossification, essential for long bone formation in the limbs, due to its anti-angiogenic effects.
Step-by-step explanation:
Thalidomide, which was used to prevent morning sickness, profoundly affected appendicular bone development in the developing fetus by inhibiting the formation of new blood vessels, a process essential for proper bone growth. The affected stage of ossification was endochondral ossification, the method through which long bones in the limbs are formed. During this process, a cartilage template is gradually replaced by bone; however, the inhibition of angiogenesis prevented the normal maturation and growth of these bones, leading to limb abnormalities.